See 50% rise in Century Enka: Tulsian

See 50% rise in Century Enka in six months time frame, says SP Tulsian, sptulsian.com.

Tulsian told CNBC-TV18, "I am going more by the quality of the assets or the earning potentials. Century Enka price to book is 0.6 because the book value is close to Rs 275-280. FY11 has been slightly disappointing for the company. They are likely to post an EPS of about Rs 28-30 for FY11. While because of high depreciation component, the cash EPS is likely to be about Rs 56-58. This company has three plants at Mahad, Baruch and Pune and they are making 1.5 lakh tonne of polyester yarn and tyre cord fabrics." He further added, "The company has now taken up an Rs 350 crore expansions to go into the value addition product plus the captive power generation. And both these things will be giving them benefits in terms of improving in terms of top-line and bottom-line plus improving the profit margins also." "Taking all this into consideration, huge assets, if I take the replacement costs or maybe the present value of the assets held by the company, you can take this as a virtually zero debt, because they have small debt of Rs 100-120 crore. If take on a networking capital of about Rs 300 crore, it can be termed as a debt free company." "We see this sporadic movement coming in into this stock. Suddenly whenever it comes on the radar you see 50-60% going up in this share. So, those who are going for it need to have a view of at least about six months time, one may not see a linear rise in the share price on a regular basis. But if you can keep a view of about six month