SP Tulsian positive on BHEL

SP Tulsian of sptulsian.com told CNBC-TV18, "When Bharat Heavy Electricals (BHEL) corrected to Rs 100 or may be Rs 105 since then I have been taking a positive call. The company has paid lower advance tax. If one takes the advance tax calculations which they have paid as Rs 620 crore being the second installment, they are likely to land up with an EPS of close to about Rs 20. That means one is getting the share, a debt free company and a significant capital goods maker at PE multiple of 7."

"Whenever the cycle revives may be on the capital goods front we see the PE expansion happening in the stock very quickly. If one sees the last 15-20 years behaviour, this stock has enjoyed a PE multiple of as high as 30 plus or may be 40 plus also. I won't be surprised to see the PE expanding to may be about 12-15. That won't happen in the next 6-12 months but definitely that can happen in next 24-36 months. So, I am holding positive view on the stock," he said. On September 25, Bharat Heavy Electricals closed at Rs 141.45, up Rs 10.10, or 7.69 percent. The share touched its 52-week high Rs 272.45 and 52-week low Rs 100.35 on 05 October, 2012 and 20 August, 2013, respectively. Also Read: L&T plans $500 mn-1 bn toll road IPO in Singapore: IFR