Expect 40% return in Falcon Tyres: Tulsian

Expect 40% return in Falcon Tyres in next one year, says SP Tulsian, sptulsian.com.

Tulsian told CNBC-TV18, "Falcon Tyre is a company which has been continuously improving the performance. If I go by their yearly performance for year ended September 2010, the company has posted topline of close to about more than Rs 800 crore and EPS has been about 13.50 for that year."
He further added, "Company has been exporting their tyre under the Falcon brand and in the domestic market they are selling the tyre in the brand name of Dunlop because again the Dunlop is a group company. So the brand has given them a strong foothold as well as the better margin and I think going forward because the clarity and the use of Dunlop brand name for the local market has started recently because the promoters, the Pawan Ruia Group, have not been able to stabilize with the production at Dunlop though the things are on an improvement stage there as well but this company is going to take the advantage."
"If I take a call on the FY11 earning for year ended September 2011, I hope that company should be able to post an EPS of close to about Rs 18 and if I go by the shareholding pattern, 85% is held by the promoters, 7% is held by one large investor, which is leaning very low market float of about 8% and continuously the share has been seen in accumulation even with such a low float. So going forward, I am expecting that the share should be capable to give a return of 40% in next one year."