In Titagarh Wagons may be post the Bengal elections, you will see the order flow coming in, which will largely boost topline and bottomline for FY12, says Investment Advisor, SP Tulsian.
Tulsian told CNBC-TV18, "Titagarh Wagons is making the railway wagons, bell bridge, castings etc. If you see the performance of the company for first nine months, they have not been able to ramp up their topline. But, if you see their bottomline, there has been about 15% growth coming in. I am expecting that the March quarter, which is traditionally the good quarter, plus coupled with the release with the orders from the railways also to meet the targets and all that; or the dispatches of the company are likely to be quite good."
He further added, "Going by the financials, the company has posted profit of about Rs 54 crore and it should be able to post an Earnings Per Share (EPS) of Rs 40 for FY11. This translates into a PE multiple of less than Rs 10. But, I am quite optimistic on the working of the company for FY12, which is likely to post an EPS of close to about Rs 50."
"If I take that call, share is ruling at PE of less than Rs 8. And, I am quite positive that may be post the Bengal elections, you will see the order flow coming in, which will largely be boosting the companies topline and bottomline for FY12. They should be able to have a larger share of the Wagon release of the railway."
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