SP Tulsian's multibaggers: Sangam India, Bilcare

In an interview to CNBC-TV18 SP Tulsian of sptulsian.com picked Sangam India and Bilcare as multibagger stocks. He sees these stocks having the potential to fetch better returns going ahead.

Tulsian is bullish on integrated denim and textile maker Sangam India from the time its Q1 earnings were announced. Given their performance in the second quarter earnings, he expects the company post better numbers ion the second half of year as well. The stock may touch Rs 80 in six months. Also read: Reliance Capital, Reliance Infra look good: SP Tulsian Meanwhile, he has a target price of Rs 300 on Bilcare in the next six months. Below is the transcript of his interview with CNBC-TV18. Sangam India I like this company largely because of better numbers posted in Q2. The company is an integrated denim and textile maker with leadership position in polyester viscose dyed yarns. In the first half they posted topline of Rs 800 crore and a PAT of about Rs 27 crore and against that it posted a PAT of about Rs 17 crore in whole of FY12. So, one can see dramatic improvement happening in their performance. They posted an EPS of Rs 7 plus for the first half of the current year against sub Rs 5 for whole of FY12. One has seen improvement in their performance because of their integrated status and they have also carried out an expansion of Rs 180 crore, which  will now be contributing to their performance in the second half . Given their status in the integrated space of denim and other textiles, it can post an EPS of Rs 15-16 for FY13. The stock has been hitting the 52 week high for last week in anticipation of the results, but I am keeping my positive stance. I have kept positive stance  since they posted their Q1 numbers, but I wanted to verify from their Q2 numbers as well. This means the trend is linear and the company will be able to post better numbers in H2 also. So, taking these into consideration the stock looks good and one can expect a level of about Rs 80 in six months. Bilcare Bilcare can be loosely called as a packaging provider to the pharmaceutical company. They provide innovation led solutions from drug discovery to market. Lots of specializations in packaging are required from the drug preservation point of view, so the company enjoys that status in this space. They have global operations and manufacturing facility in US, Europe, India, and Singapore. Their Q1 and Q2 numbers were more or less in lines with their previous year results. Recently, they sold one of their overseas unit to reduce some debts in their books. For H1 they posted Rs 1,900 crore of top-line with EPS of Rs 30 plus and EBITDA margin was quite respectable at 12.5 percent. As said earlier, it cannot be termed as a simple packaging company. Their book value is Rs 600 plus and expected EPS for FY13 is about Rs 64, so the stock is ruling at a price to earning multiple of 3.5 and price to book of just 0.4 or 0.35. For last couple of months, the stock has been seen in the accumulation zone. The stock moved up by about 15-20 percent, but it has not seen sharper rise as it should have due to their results. I have a positive view on this stock ahead and I have a price target of Rs 300 in next six months. Disclosure: I have no holdings in the stocks discussed.