Alfa Laval can give about 10-12% returns: SP Tulsian

Alfa Laval can give about 10-12% returns just in two months time with very limited downside risk, says SP Tulsian, sptulsian.com.

Tulsian told CNBC-TV18, "Alfa Laval is a very interesting investment idea from just two months view. In view of the delisting, reverse book building offer is opening on 15th February. If you recall, the promoters have earlier indicated a floor price of Rs 2045 in the month of August which now they have revised to Rs 2850."
He further added, "The promoter stake is at 89% and 10% is held by the 9000 shareholders widespread. We have seen this kind of things happening in case of Atlas Copco that whenever you have a widespread holding, door-to-door persuasion has been made by some informed circles of the company or merchant bankers to persuade them to tender their shares in the open offer. So raising the floor price by the promoters indicates the seriousness on part of the promoters to acquire all the shares."
"If you see the financial performance for calendar year 2011, it indicates EPS of close to Rs 80. Traditionally, all these companies have got delisted at a PE multiple of 40 times which in my view works out to about Rs 3200 per share. I am expecting that to happen for this company also at Rs 3200."
"The share is now ruling at Rs 2800. If you just acquire this share at Rs 2800, take the worse case scenario that the reverse book building response gets an offer of close to about Rs 3100-3150 or Rs 3200, then also you are bound to make a gain of about Rs 250-300 on the lower side while on the upper side you can make a gain of about Rs 400."
"Once the delisting is successful, whether you tender your shares or you don