Deccan Cements may go to Rs 750, says SP Tulsian

SP Tulsian of sptulsian.com told CNBC-TV18, "In Deccan Cements the operating profit margin has risen to 17 percent which was 10 percent for the whole of FY15 and H1, they have an operating profit margin of 17 percent. And, going forward, if you talk, we have heard Panyam Cement management also giving better picture that H2 will be better than H1 and that applies practically to all looking to the cement off-take and all that.""I am quite positive, because in H1, the earnings per share (EPS) is Rs 42 which was at Rs 28 for whole of FY15. That means already double of that, almost one and half of that already achieved in H1. That means, I am not expecting an EPS of less than Rs 90 for this stock. Book value is Rs 400, debt is very low at Rs 125 crore. The enterprise value comes to at about maybe USD 35 per tonne and even if you go by the share holding pattern, 56 percent is held by the promoter, and 24 percent is held by the 4 high net worth individuals who have been invested for quite a long time," he added."In H1 they had a topline of Rs 310 crore against the whole of FY15 of Rs 440 crore. So, they are improving the capacity utilisation plus fetching better margins and better realisation, which in fact is leading to higher profitability and higher positive view going on the company. And apart form that 2.3 million tonne, the entire captive power requirement is met by the company through their own sources, that is thermal, hydro and solar and they have wind, all four are contributing to their power requirement. So, taking all this into account, share is now rolling sub-Rs 600. I am expecting the share can touch a level of Rs 750 in six months, but if held for a very longer time maybe for a couple of years, I would not be surprised to see the price moving to four digit as well. But, Rs 750 in the next six months," he said.