Buy PTL Enterprises for long term: SP Tulsian

Buy PTL Enterprises with long term view, says SP Tulsian, sptulsian.com.

Tulsian told CNBC-TV18, "PTL Enterprises old name use to be the Premier Tyre and this company was acquired by the Apollo Group by about 8-10 years back. They have a tyre making plant at Kochi on a land area of about 30-32 acres but that is not their main business, they are not into the tyre making. The entire plant has been leased to Apollo tyre on a rental of Rs 40 crore per year that is Rs 10 crore per quarter. If you see the standalone results every quarter gives an income of flat Rs 10 crore. So some times that causes anxiety that how can you have a same fixed income on every quarter, so that Rs 10 crore is realized by the company as a rental income or maybe as a lease rent on a quarterly basis from Apollo tyres."
He further added, "If you see the standalone performance on an equity close to Rs 14 crore since they get Rs 40 crore lease rent they do not have much of expenses maybe about Rs 5 crore, so they have a PAT of close to Rs 22-23 crore every year from this operations."
"They are having 300 bed hospitals at Gurgaon. There has been talk that the company is looking to sell that hospital because that was taken one off activity maybe about 6-7 years back when the group might have decided to move into the hospital business. But this 300 bed hospital I don