Buy Donear Industries, says SP Tulsian

SP Tulsian of sptulsian.com told CNBC-TV18, "Donear Industries qualify as a buy also. If you recall last year in the mahurat, I recommended the stock at Rs 24, today it is Rs 72. It has given you a return of 200 percent, but on the absolute number it has given you Rs 48 return.""On Rs 72 I expecting the stock still to give you a return of Rs 36 that means about 50 percent, for the simple reason because if you see their textile division the new plant which they have set up in Surat are making fine shirtings, those who have seen the advertisement of Raymond they are only focussing on the white shirting of a high value category, which is produced by this company.""It has been the real kicker of the real estate division or the realty division, which I stated in my last year’s recommendation that they are owning Donear House at Andheri of about 10 storey building, one lakh square feet, half of which has been leased out and if you see the company has started yielding about Rs 8-9 crore annual rental income, half of the space is occupied by them and half is leased out.""The interest liability is continuously seen on reduction, the things are quite positive for the high value shirting makers or high value textile makers - all these pointers are going in favour of the company, 75 percent promoter stake and as I said the assets are quite rich. If you see the market cap of sub Rs 400 crore all goes in favour of, again at a current price of Rs 73-74 qualifies a good buy. I won’t be surprised to see a gain of about 50 percent till next Diwali," he said.