Fedders Lloyd can touch Rs 80-90, says SP Tulsian of sptulsian.com.
Tulsian told CNBC-TV18, "If you go by the business model of Fedders Lloyd, they are into environment control, complete air control solutions, and power projects. They have recent set up a new plant near Baroda for making tower for wind power projects. They are catering to the PSU, government, defence, private sector, and the engineering sector."
He further added, "We have seen a lot of volatility. Punj Group, which is controlling these companies along with two-three other listed companies, is not enjoying a good discounting on the stock exchanges. If you take the financial performance of the company, they have June ending, for June 2012, the company had a top-line of close to about Rs 900 crore, with EPS of close to about Rs 13.60."
"With regards to the financial performance or the ramp up in the working, it is always seen in the March quarter results because they have to complete the projects for the parties to book them in the financial year."
"I am expecting that maybe for the first two quarters the financial performance will look flat. We may see an EPS of close to Rs 2 in the September quarter as well as in the December quarter. But, overall, the financial year 13, June ending, should see a top-line of close to Rs 1,000 crore with EPS of over Rs 15."
"This sector is a low PE multiple sector. You may see a PE multiple of eight-nine. But if one goes by the expected EPS of Rs 15 for FY13, the share is now ruling at a PE multiple of less than four. The book value of the company is quite high, quite respected at about 85-88."
"In the last one week or so, we have seen some accumulation happening in the stock at the lower level. The stock has moved by about 15 percent in the last one week or so. I think this trend is likely to continue. If somebody can keep a view of about 12-18 months, I won't be surprised to see a price of Rs 80-90, but I am taking a price call of about Rs 65 in the next six months or so."
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