Automotive Axles may test Rs 850: SP Tulsian

SP Tulsian of sptulsian.com told CNBC-TV18, "Automotive Axles is a joint venture company of Kalyani Group & Meritor Inc of USA & they are making rear axle & axle assemblies for trucks, commercial vehicles and having three plants in India.""The company has posted very good numbers for H1FY16. In fact they have surpassed the turnover topline of whole of FY15, which was at around Rs 460 crore, while in H1 alone the topline is Rs 510 crore and the company has shown a better operating profit margin in first half of FY16 at 5.15 percent against 4.35 percent of whole of FY15. Due to this the operating profit has risen to Rs 26 crore in first half which was Rs 20 crore in whole of FY15 leading to profit after tax (PAT) of closer to Rs 15 crore in H1 against Rs 10.5 crore in whole of FY15.""If you see the earnings per share (EPS), it is placed at Rs 10.50 for first half of FY16 against Rs 7 of FY15 and going forward the capacity utilisation which we have been seeing is likely to continue hereon," he added."The equity is very low at Rs 15.11 crore with networth of Rs 320 crore and company only has a small debt of Rs 50 crore largely for the working capital and shareholding pattern 71 percent is held by the Indian as well as US promoters jointly at closer to 36 percent held by Kalyani Group, 36 percent held by Meritor Inc of USA and institutions are holding about 14 percent.""I think this is a very promising stock with the reputed promoter like Kalyani Group and may be the stock can double in one year but I have given a target of Rs 850 in next six months," he added.