Welspun Projects can touch Rs 125: Tulsian

Welspun Projects can touch Rs 125 in the next six months time, says SP Tulsian, sptulsian.com.

Tulsian told CNBC-TV18, "If you see Welspun Projects because there has been change in the management, the Welspun group has subscribed the shares at Rs 123, the present book value of the company is at Rs 130 but the share has been ruling at Rs 83 and strangely post change of management, when the company or the promoters or the acquirers had gone ahead with the open offer, nobody had tendered their shares at Rs 130 because the share moved up to Rs 180-200 merely on the ground that Welspun has acquired this company." He further added, "If you look at the networth of the company, when the new promoters came into this company, they subscribed the share at Rs 123. They pumped in about Rs 210 crore into the company and right now it has a networth of more than Rs 500 crore, of which Rs 300 crore has been largely used for BOT projects, which I think that the new management may not be too keen to run BOT projects because their focus is more on the oil and gas sector where they have their specializations." "The promoters are even expanding their presence in this space by acquiring some closely held companies also. So in the future, this could be just the platform for them to ramp it up as a big infrastructure company focusing more on the oil and gas pipelines because the promoter of this company - Welspun Corp - is holding the entire 75% stake through their step down subsidiary Welspun Infra." "So overall taking this into consideration, the growth expected on the sector and the financials of the company, I think at Rs 83, there is very limited downside. But once you see these announcements or the moves happening on the financial front by the company, the share can move to about Rs 125 maybe in the next six months time."