SP Tulsian of sptulsian.com told CNBC-TV18, "I am impressed by the corporate move having initiated by Mahindra Ugine. If we have seen in that Mahindra Ugine, they have sold their land to Mahindra and Mahindra and realised a huge amount of money. In fact, same kind of theme lies in Autoline Industries also."
"The company is an auto ancillary company and they have 12 plants of which eight plants are in Pune, two plants in South Korea and US and three plants are in Pantnagar, Dharwad. The company has been looking to monetise some of their surplus land at Pune because they have about seven manufacturing plants, one design centre in Pune. So they have surplus land, they are looking to monetise part of the land at Pune for which the market is expecting that it can fetch them about Rs 150 crore or so," he addede.
He further said, "If you go by their debt position, it is close to about Rs 220 crore in the books of the company. So, the major amount can get used by the company to retire that debt and that can virtually make the company as debt free. They have a very strong portfolio of their products. They are into ship material components, they are making assembly, sub-assembly supplying to Bajaj Auto and other auto makers and they have a product portfolio of about 250 products with top line of close to about Rs 800 crore."
"Right now, because of the high interest burden of close to about Rs 40 crore per year, they are not able to make much of the bottom line. The contribution to the bottom line is not very high for FY13 also. They had an exceptional income of about Rs 7 crore. So, because of that they have been able to post earnings per share (EPS) of close to about Rs 7. Going forward, I am quite hopeful on that. Whenever we see the share price, it starts once it corrects, it takes a support around Rs 75 or so which seems to be the support level now, now it is ruling at Rs 79-80. So this seems to be its bottom and whenever it starts going up, it swiftly goes to the level of Rs 120-125. I am giving a price target of Rs 100 in next six months or so," Tulsian added. Also Read: Discount war threatens to topple commercial vehicle mkt
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