Mahindra Ugine can move to Rs 80-90: Tulsian

Mahindra Ugine can move to Rs 80-90 in a year, says SP Tulsian, sptulsian.com.

Tulsian told CNBC-TV18, "Mahindra Ugine is a subsidiary of Mahindra and Mahindra and engaged in making alloys steel plus pressed sheet metal components and assemblies. Also making gear and things which are largely cater to the automobile railway and engineering stocks."

He further added, "If you see the financial performance of FY 11 the company had a top line of Rs 1200 crore plus but had posted about Rs 6 crore but the cash loss was not there. If you see this company they have 4 plants- Khopoli, Pune, Nashik and Rudrapur. If you see the old financial performance of the company maybe 3-4 years back it use to report an EPS of Rs 15 plus but because of the last couple of years they had problems in raw material volatility and the focus of the management was not there on the stock. But the refocus and again the company has come on the list of the group and all the efforts are made to turnaround this company."

"The company share is ruling at a book value of Rs 50. If you see the rich assets of the company just to give an example they have a land at Khopoli of about 150 acre has a present value of close to Rs 150-160 crore, while the market cap of the company is Rs 165 crore only. If one can buy this stock with a view of one year, I think it has potential to move to Rs 80 to 90 in this period because working is likely to get improved in this financial year 2012."