TVS Srichakra can touch Rs 400: SP Tulsian

SP Tulsian of sptulsian.com is of the view that TVS Srichakra can touch Rs 400 in next six-eight months time.

Tulsian told CNBC-TV18, "I have not been holding a positive view on the tyre stocks because of rising prices. This is because the pricing power is not available to the manufacturer but this company seems to be an exception largely because of the high profitability or because of the very low equity base maybe closer to about Rs 8 crore. If you see their EPS it is at about 50-51 while their cash EPS is as high as 72-73. This company makes two and three-wheelers tyres and tubes, the complete range. They supply to TVS Motors, Bajaj Auto, Hero Honda, to all the two-wheeler majors. Their topline has been close to Rs 1,100 crore for FY11 and the company has declared a dividend of 125%. So it