ILandFS Engineering can move to Rs 160-180: Tulsian

ILandFS Engineering and Construction Company can move to Rs 160-180 in the next 12 months, says SP Tulsian, sptulsian.com.

Tulsian told CNBC-TV18, "ILandFS Engineering has been struggling for last 6 months or so especially more on account of the debt restructuring. Logging their claim with Satyam Computer in which they have logged at about Rs 350 crore and they are confident of receiving it also. They have also received one time settlement with the debtors and they have inducted an investor from Middle East who is holding 32% stake which has been acquired at Rs 185 and subsequent to that acquisition and the open offer came at Rs 195."

He further added, "I think everything is into place. You have the investors with IL&FS holding 35%, 32% stake by overseas investors from the Middle East. Apart from that institutional holding is quite high leaving the public float at 10%. As I said one time settlement has happened, re-schedule of loans has happened and the net debt in the books of the company on a consolidated basis is left at about Rs 850 crore. If you see their core business they have been doing quite well. Topline of Rs 1000 crore and the profitability has to get improved. So if you see their business portfolio, they are holding the stakes in various infrastructure projects, rail, power projects, bridges, infrastructure, roads and all that."

"I think with IL&FS as the promoter and the overseas investors though has not been named as a promoter pursuant to the order of the company law board but collectively should be taken that 70% stake is held by both the promoters. I think everything is in place. If you see the market cap of the company is quite low. The debt as I said is at Rs 850 crore. I think this can prove to be a really good stock provided one can keep a view of about 12 months and I won