Wockhardt has target of Rs 2400: SP Tulsian

Wockhardt has target of Rs 2400, says SP Tulsian, sptulsian.com.

Tulsian told CNBC-TV18, “Wockhardt, if one goes by the company’s financial numbers for Q3 they had earnings per share (EPS) of Rs 39 and for nine months they had an EPS of about Rs 115. Q3 sequential because I have always been taking results on sequential basis because the kind of transformation or the up move in the earnings which we have seen in last two quarters is critical. So, for FY13 one can expect an EPS of close to Rs154-Rs 155.”
He further added, “Going forward maybe for FY14 the growth will not be very ambitious but still one can expect to be about Rs 165. If one goes by the price to earning multiple it is now ruling even on the historic, I am not going by the forward, it is now ruling at a PE multiple of 12 and if one sees the top-line to market cap it is ruling at 3.5 against peers like Cipla or Dr Reddy they are all ruling at a PE multiple of 18 and top-line to market cap of about 4.5 to 5 times. The PE expansion is bound to happen. I am not going on the top-line to market cap criteria but PE expansion or PE multiple has to get expanded and even if one takes a PE multiple of 15 with an expected EPS of Rs 160 on a conservative basis that gives one a price target of Rs 2400.”