Hindustan Dorr-Oliver can test Rs 60: Tulsian

Hindustan Dorr-Oliver can test Rs 60 in very short term, says SP Tulsian, sptulsian.com.

Tulsian told CNBC-TV18, "Hindustan Dorr-Oliver - we have been hearing that because IVRCL is the promoter in the company and they are holding 55% stake. We all know that IVRCL is passing through a huge cash crunch at their end and they have been divesting their stake in various infrastructure projects at the end of the company. At that time maybe about 4 to 6 months back, there was talk that they were seriously looking at divesting their 55% stake in which they are holding at Hindustan Dorr Oliver and that was confirmed by the management of IVRCL as well."
He further added, "If you go by the business model of the company it is an industrial EPC player catering to all the core sector industry, fertilizer, power, water, water management and waste management. They are making the industrial equipments like heat exchangers, storage tanks, the solid and liquid separation equipments and all that."
"The performance of the company is quite robust, For FY11 it posted a topline of about Rs 950 crore with an EPS of close to about Rs 7. Going by the same trend I do not think that there should be any problem considering their order book and all that, so share is ruling at a PE multiple of less than Rs 6."
"In last one week we have seen informed buying taking place into the stock, which has made the share to move from Rs 36 to Rs 44-45. That indicates probably something must be cooking up and we may see the news resurfacing of the promoter intending to sale their stake. I won