Lloyd Electric can move to Rs 85: SP Tulsian

Lloyd Electric and Engineering can move to about Rs 85 in next six months, says SP Tulsian, sptulsian.com.

Tulsian told CNBC-TV18, "Lloyd Electric and Engineering seems to have good business model. They are the leader in the heat transfer and making the coils and heat exchangers for the air conditioning industry. Apart from that they recently or maybe couple of years back have gone into the marketing of the window and split AC also for which the new plant has been setup at Himachal Pradesh with a capacity of 3 lakh ACs per annum."
He further added, "If you see their core heat transfer business of coils and heat exchangers, which they are making and catering to practically all the air conditioning makers whether you talk of Voltas, Blue Star, Hitachi, Daikin, LG and apart from that they are catering to the industrial and the public sectors also like Railways and all that."
"If I go by their financial performance for Q1, in fact FY12 has been quite satisfactory, but if I go by their Q1 performance with a top-line of close to about Rs 300 crore with PAT of Rs 15 crore with an EPS of Rs 4.85 for the quarter. Generally their Q1 and last quarter are always very good and they post very good results. So I am expecting that probably for FY13 company should be able to post an EPS of close to about Rs 15 and that makes the share presently to rule at a PE multiple of 4.5."
"For last one month we have seen a good appreciation or good rise in the share price which used to rule at about Rs 50-54 and now having moved to 66-67 and in spite of such a huge rise the share is now ruling at a PE of 4.5. The book value of the company is at about Rs 155 as on 30th June."
"I am quite upbeat on this and the way we have been seeing the improvement in the financial performance of all the air conditioner makers largely more focus on Voltas and Blue Star, I am expecting that this company catering to their components and their main heart products for the air conditioner is also likely to do quite well and taking that into account I think that maybe share can move to about Rs 85 in next six months or so."