Vivimed Labs has target of Rs 400: SP Tulsian

Vivimed Labs has target of Rs 400, says SP Tulsian of sptulsian.com.

Tulsian told CNBC-TV18, "Vivimed Labs is into the pharma as well as they are making specialty chemicals. If you see the performance of the company, they have been doing quite well having manufacturing facilities and apart from that they have been going for overseas acquisitions for which the board of the company has passed an enabling resolution to raise USD 50 million by FCCB, QIB or ADR or GDR of that first tranche of USD 7.5 million has already been issue to IFC Washington."
He further added, "If I go by the financial performance, the company posted a topline of close to Rs 400 crore plus with an EPS of Rs 46-47 so that translates share presently ruling at a PE multiple of 6 and as I said that because of the overseas acquisition the company has been contemplating, which is likely to get fructify in next two-three months time because already the postal ballot formality have all been initiated by the company. This stock looks quite good maybe company should be able to post an EPS of about 60 maybe 56-60 on a broader range because it depends when the consolidation of the overseas companies will happen. But even if I go by the financials of the present one and PE multiple of 6, I find value in the stock and maybe a price target of Rs 400 can be taken in next 6-8 months time." Disclosure: I have personal holding in Cable Corporation.