Ramco Industries can move to Rs 80: SP Tulsian

Ramco Industries can move to Rs 80 in the next six months, says SP Tulsian of sptulsian.com.

Tulsian told CNBC-TV18, "Ramco Industries is a Madras Cement group company. It makes 5 lakh tonne of cement roofing sheets per annum and 30 lakh tonne of cement pressure pipes per annum. Cement pressure pipes are used into sewage, water projects etc."
He further added, "If you see the financial performance of all the cement roofing companies, we may find it little dull. But if you take a call on the other roofing cement sheet makers like Hyderabad Industries, Everest Industries or maybe Ramco, all of them are doing quite well. It is expected. Because of increase in the rural income, the demand for the cement sheet has been continuously increasing."
"The company has nine plants. A couple of years back, we had the environment issues. But now all the nine plants of the company are environment compliant. The financial performance of the company has been continuously improving. If you go by the Q1 results, they have posted a top-line of close to about Rs 260 crore with earning per share (EPS) of close to Rs 2.60. I am expecting that FY13 will end with a top-line of close to about Rs 1,100 crore with EPS of close to about Rs 11 and PAT of over Rs 100 crore."
"If you go by the book value parameter also, the share is ruling at a price to book of 1, and at a PE multiple of six. Since this belongs to the Ramco Group, which is also controlling Madras Cement, I find this stock quite interesting. It can move to about Rs 80 in the next six months also."