Vikas WSP can touch Rs 75: SP Tulsian

Vikas WSP can touch Rs 75, says SP Tulsian, sptulsian.com.

Tulsian told CNBC-TV18, "Because of the huge volatility in the commodity segments, the name of Vikas WSP also came into that. But the investigations by Forward Markets Commission (FMC) found that they have no involvement. They have only traded in the commodity on the spot basis."
He further added, "If you go by their product profile, they are the largest makers of guar gum polymers which are used in food, oil drilling, mining, and paper industry. Even in food, it has a multiple uses. The company is now doubling its capacity. Presently, they have four manufacturing plants, all in Sri Ganganagar in Rajasthan because guar is cultivated in the Rajasthan state. It has a capacity of 40,000 tonne. Now, they are setting up another plant of 39,600 tonne at Bikaner in Rajasthan. That plant should be operational in next 24 months or so."
"A couple of months back, there were issues, when the auditors of the company resigned. But purely going on the financial call, for FY12, company had a top-line of close to about Rs 1,000 crore. On that, the EPS was about maybe Rs 12 or so with PAT of about close to Rs 160-165 crore for FY12."
"For the first quarter of FY13, they have posted the same top-line and PAT, Rs 1,010 crore topline and about Rs 160 crore PAT with an EPS of close to about Rs 11.75. We all knew that first quarter has been very positive for the company in terms of the realisations. Post that, in this last one month, the prices have really corrected to a great extent."
"One can expect a conservative EPS of close to about Rs 25 for whole of the FY13. Once the product capacity goes on stream, which will happen in next two years, one can take a long-term view also of next two-three years. But on a short-term basis, one can expect a price of about Rs 75 in the next six months." Disclosure: I have no personal holding in the above stock.