Tecpro Systems can touch Rs 225: SP Tulsian

SP Tulsian, sptulsian.com feels that Tecpro Systems can touch Rs 225.

Tulsian told CNBC-TV18, "Tecpro Systems is mainly a material handling company and they are more into coal and ash handling business. They are catering to the steel, cement, power because these are the three industry, core sector industry where coal and handling of ash is very much taken and the company has recently taken up the job of balance of plant equipments and the EPC contracts for power construction business also."
He further added, "Generally for balance of plant work constitutes about Rs 1 crore per megawatt because the ballpark cost is about Rs 5 crore per megawatt of which balance of part job is about Rs 1 crore per megawatt and that is the new business which the company has taken up last year and I think once that catches on even that can start adding to the good volume and bottom-line of the company."
"Even if I go by the financial performance though there has been dip on a year on year basis in FY11 company posted an EPS of close to about Rs 28-29 which is at about Rs 24.50-24.60 for FY12 but still on a topline of Rs 2500 crore I don’t think that this is really looking anything inferior performance or anything to cry about."
"Going by the future course of actions the company taken up the strategy of this new job additions or the new business additions, I think the company should be able to post an EPS of Rs 30 for FY13 and if you recall this company went public couple of years back at Rs 355 per share and now the share is ruling at Rs 165. So if somebody can keep a view of about 1 year I think this can give a return of about 40%, can expect a price of about Rs 225 for the stock." Disclosure: Holding investments in BHEL.