SP Tulsian of sptulsian.com told CNBC-TV18, “I will advice investor to remain invested in Sintex. If you really take the future, (for long term investor) this is the most ideal stock for you which is capable to give a return of maybe 25 percent plus every year for next two-three years. If you really see problems, they have all been left behind their overseas unit, have started doing well, they have been able to tide over their FCCB liability by mix of preferential issue, fresh raising.”
He further said, “And even if you go by their financial performance of FY13 - that has been quite good with EPS of Rs 11 plus and the company has declared a dividend of 70 paise on face value of Re 1. Going by the performance, the company is likely to make the cash profit of Rs 500 crore plus with a top line of close to USD 1 billion.”
“So these kinds of companies once they get corrected, probably that is the right time to make entry. So you have entered the stock at a right price, you are getting a gain of maybe Rs 2-3 but don’t look for the small gains. Since you are a long term investor keep a view of about couple of years to see good returns on the stock,” Tulsian added.
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