Vesuvius India can test Rs 500, says SP Tulsian

Vesuvius India can test Rs 500 in six to eight month time, says SP Tulsian, sptulsian.com.

Tulsian told CNBC-TV18, "Vesuvius India makes high performance specialty refractory products. The company has already announced results for September quarter. The results have been more or less on rising trend. In calendar year 2010 they had a topline of Rs 445 crore. They have been achieving a net profit margin of close to 10.5-11%. For first nine months also the same trend is seen in its performance. The PAT margin is maintained at 10.65%."
He further added, "The best part is that company is improving topline. We have already seen 20% growth on a comparable basis for nine months. This has resulted into a topline of close to Rs 395 crore for first nine months of the calendar year 2011 against Rs 445 crore of calendar year 2010. That translates into an EPS of about Rs 25-26 because Rs 20.50 has been the EPS for first nine months. If one translates that, it rules at a PE multiple of Rs 14."