S Kumars to remain in Rs 30-36 range: Tulsian

S Kumars will remain in Rs 30-36 range for next 3 months, says SP Tulsian, sptulsian.com.

Tulsian told CNBC-TV18, "S Kumars is a very consistent stock. If you see the performance they have posted an EPS of close to about Rs 14 for FY12 and if you break that probably you will find an EPS of Rs 3-3.5 every quarter and I don’t think that anymore consistence is really required. So if you take that into account I agree that there are debt concerns in the balance sheet and that debt is huge or may be the European operations are not catching up the kind of expectations the people have but still it is ruling at a PE multiple of may be less than 2.5 precise at those levels and the Reid And Tailor valuations which they are holding close to about 75% stake is also not truly factored into the valuations of the stock."
He further added, "The downside is very limited but you are unfortunately not seeing the price sustainable. May be again once the stock moves to about Rs 35-36 we may see the selling again coming back and share again slipping back to about Rs 30. So, one can say that the range of the share should be taken broadly for next 3 months or so between Rs 30-36."