Atul may move to Rs 400, says SP Tulsian

SP Tulsian of sptulsian.com told CNBC-TV18, "Atul has announced good numbers. The company has two plants one at Atul Complex and second is at Ankleshwar and it is making the agrochemicals, aromatics, pigments, pharma intermediates, bulk drugs, bulk chemicals and bulk intermediates. The company has been consistently posting good numbers. This was a flavour of the market. People have been taking lot of interest."

He further added, "For the last six months, the stock has gone little rangebound or subdued. In June quarter, topline was at Rs 500 crore with earnings before interest, taxes, depreciation and amortisation (EBITDA) of Rs 66 crore and profit after tax (PAT) of Rs 40 crore with earnings per share (EPS) of close to about Rs 13.65 paise. For FY13, it had an EPS of close to about Rs 45 for whole of FY13."
"I am expecting that probably company should be able to post an EPS of about Rs 56 for whole of FY14, which gives a 20 percent growth. In this scenario any company posting 20 percent growth on the bottom-line should really be seen very good. Apart from that the company has 1,300 acres of land, that is at the Atul Complex. The market has been talking of that management is looking to monetise some of the part of the assets," Tulsian said.
He further said, "The surplus land estimated to be with the company is about 500 acres. The market cap is close to about Rs 1,000 crore with the debt maybe about Rs 300-350 crore. The enterprise value is very low at about Rs 1,300-Rs 1,400 crore, while maybe even 100 acres can or maybe 200 acres can give about Rs 400 crore-500 crore to the company. I am not really going too much on the land monetisations, but I think the working Rs 56 EPS for FY14 can make the stock to move to about Rs 400 in the next six months or so."