Unity Infraprojects can touch Rs 60: SP Tulsian

SP Tulsian, sptulsian.com feels that Unity Infraprojects can touch Rs 60 in next one year.

Tulsian told CNBC-TV18, "Unity Infraprojects is infrastructure cum realty company. They have a very strong presence in Mumbai. They are operating in four verticals that is building and housing, transportation, irrigation and water supply. We see many of their contracts getting executed by them in the city of Mumbai. You see them executing the housing projects, carrying out the construction work for the muncipality or several water and irrigation and sewerage projects."
 
"Going by the financial performance for first half, the top line of Rs 800 crore with PAT of Rs 35 crore, which translated into an EPS of close to about Rs 4.75. If you see the realty stocks which have come in focus sometimes people have been taking a call purely on the realty space and they have not been able to identify the companies where the hybrid business along with the infrastructure focus also exists there."
"Considering the strong presence of the company, the financial performance and the fundamentals of the company, considering the book value of Rs 105 as on 30th June, while the share is ruling at Rs 45-46, so taking all this into consideration positive view on real estate and the infrastructure stocks. It is ruling at a PE multiple of 4-4.5 with a price to book of 0.4."
"This stock looks quite good with respectable promoter holding, promoter holding of about 63-64 percent with 20 percent held by the institutional and large investors. The share looks quite undervalued. The downside risk is very minimal from here on and one can expect a price of Rs 60 in next one year or so." Disclosure: I have no holdings or interest in the above stock.