Expect Amtek Auto to move to Rs 62, says SP Tulsian

SP Tulsian of sptulsian.com told CNBC-TV18, "We keep hearing from the experts buy when there is blood on the street. I recall my buying calls given on Wockhardt when it was rulling at Rs 75, everyone wrote off. If you have the strength of the assets with the company, I don’t find any reason that why should you not go for Amtek Auto because the company has all the problems. I cannot expect anything worse than these results.""One news came in that probably they will go slow on monetisation of the domestic assets because probably they may not be requiring it. One billion can get monetised or mobilised from the overseas assets itself. On the financial part, they have Rs 14,000 crore debt. They have started reducing the debt process. Maybe the reduction in the fixed asset, in FY'14 it was Rs 20,000 crore, everything referred on a consolidated basis, it has been at Rs 14,000 crore. Though the management has given a commentary or guideline of 12-18 months for deduction of debt from Rs 14,000 crore to Rs 7,000 crore, I expect that to happen much faster," he said."They are holding stakes 36 percent Castex Technologies, 49 percent in Metalyst Forgings and 67 percent in JMT Auto, each one of them have their significant presence in each product. So on a consolidated basis, topline is Rs 15,000 crore with very tiny equity of about Rs 45 crore. After showing such a huge loss of Rs 1,000 crore on a consolidated basis, networth is Rs 6,500 crore giving book value of Rs 277. They will post the loss of Rs 1,500 crore in this year also, because the year has just begun for them and they don’t take any initiative of debt monetisation.""Maybe H1 and H2 are two extremes. Till H1, I am not too perturbed on Q3 numbers when they reported the loss but if you see their commentary, I fully agree that till H1, there was no inkling at all. All the problem started with the margin call pressures.""If you take the marketcap of this company, maybe about Rs 14,000 crore debt, you are catering to the global majors and this is not a usual kind of project where any project can get created in a couple of years. There is a strong entry barrier. So my point is that the movement that we will see, we have seen this kind of indications in the past if you recall when it was in F&O, it moved up by 80 percent in a day. They are mobilising Rs 3,500 crore and have achieved 50 percent in one go. They are not selling their stakes, one land in Delhi for Rs 200 crore and one stake of the Barista for Rs 300 crore. One monetisation, one transaction can give them Rs 3,000-3,500 crore. Imagine what will be the situation at that time," he added.He further said, "I won't be surprised if you have this news, at that time you won't be able to come and buy this stock, it will be 20 percent in upper circuit for couple of days. In fact we have seen that happening in the past. So my point is that you are not losing anything on the lower side. You may have a loss of about Rs 5. You have seen worse of the events in this past, exit from yesterday's core numbers. So I think that you are having a very limited downside but if you have patience, I am hopeful that the process has to get implemented. It is just a matter of time. Monetisation happens in six months, nine months or twelve months but it will happen. So I won't be surprised to see a price of Rs 100 in one year but I am expecting it to move to Rs 62, maybe 50 percent return in next six months or so.""One can look at BF Utilities with a target of Rs 950 in six months but I see it as a multi-bagger, moving to Rs 1500 in next couple of years."