Reliance Ind Infra can touch Rs 750: SP Tulsian

SP Tulsian of sptulsian.com is of the view that Reliance Industrial Infrastructure can move to anywhere between Rs 750 to Rs 1,000.

Tulsian told CNBC-TV18, "Reliance Industrial Infrastructure is a company belonging to Reliance Group in which Reliance Industries is directly holding 45.45% stake. This company came into the fold as promoter by Reliance Industries about 5 to 6 years back. Since then there has been the flat performance. This is because the company is owning about 56 kilometer pipeline which transports the crude from Chembur to Patalganga. That is the reason why the company identical top-line and bottom-line with EPS close to Rs 15 every year. This has been lying low with market cap of less than Rs 1,000 crore. There have always been expectations that this company will get activated by Reliance Industries. The value accretion game may start because the company which belongs to Reliance Industries with market cap of less than Rs 1,000 crore cannot remain at those levels. The trigger has really started, we have seen that Reliance Group has acquired 74% in Bharti AXA Life and Bharti AXA General Insurance with 17% having acquired by this company. This company presently has networth of about Rs 200 crore of which about Rs 160 to 170 crore is laying as cash in bank balances with the company." He further added, "The process of putting in other businesses in the company has started. If insurance may not come in a full fledged way we will see these kinds of new businesses coming into the company. I am quite hopeful as a value creation game by the group. One does not know maybe the similar other projects can come in a smaller way. That is the reason, with EPS of Rs 15 that translates into a PE of 30-35 which the share has been ruling for ages. For years this has been ruling at 30-35 mainly on this hope. The hope of this has started with the 17% stake of Bharti AXA and I hope that this can really be a big trigger for the company. Going forward if somebody can keep a view of about one year share can move to anywhere between Rs 750 to Rs 1,000 I am giving a broader range so that is the trigger."