Selan Exploration can touch Rs 415: SP Tulsian

Selan Exploration can touch Rs 415, says SP Tulsian, sptulsian.com.

Tulsian told CNBC-TV18, "Selan Exploration is into the oil explorations. They have two operational blocks. This is not a very big company. The company is producing about 3 lakh barrels of crude oil per year, so one should understand the size of this company. But they have two operational blocks in Gujarat and two already have seen 3i seismic studies. In my view they should be operational in the next 6 to 8 months time. Going forward company should be able to ramp up their production may about 50 to 100% in the next couple of years."

He further added, "If you see the financial performance or the financial position of the company- the company is sitting on a cash balance of about Rs 100 crore in their books, so they do not have to borrow any thing for this research and exploration survey activity. That Rs 100 crore translates in to Rs 60 per share and if you see the financial performance for FY11 they posted an EPS of close to about Rs 18 with top-line of about Rs 75 to 80 crore."

"Going forward I see this as a because with the market cap of about Rs 550 crore with EV if I knock out the cash held by the company the enterprise value comes to about Rs 450 crore and the gradual upside we have been seeing in the crude prices, I think this can be a steady stock one can have in the portfolio and can expect a price of about Rs 415 in the next 6 to 8 months time."