Orbit Exports may move to Rs 475: SP Tulsian

SP Tulsian of sptulsian.com told CNBC-TV18, "Orbit Exports is making faux silk. In fact this is the substitute of the natural silk. They are mainly in to the exports. They export 8 million meter fabrics annually to the developed countries whether you talk of US, Europe, Far East. They have been continuously getting the higher realisations maybe because of the rupee weakness or maybe the higher demand. That has largely used in the home decor, women's apparel and maybe the Christmas craft.""The topline of company is close to about Rs 175-180 crore. For first half they had a topline of Rs 85 crore. Operating profit is very good. They also have an operating profit margin of 30 percent and profit after tax (PAT) margin of 20 percent. I think that going forward that margins will keep on improving.""First half EPS of FY16 is at Rs 12, which was Rs 19 for FY15. That means if you take this Rs 25 EPS comes for FY16, I am confident that FY16 will be having an EPS of Rs 30 because they have been gradually ramping up this production capacity. In fact this is an in-house developed technology of making this substitute to natural silk and the kind of demand which they have been seeing.""Again promoters' stake of 53-54 percent and high networth individuals (HNIs) are holding quite a huge chunk about 32-33 percent stake. So I am quite positive on the stock with Rs 25 EPS, you get the stock at Rs 15 P/E multiple. Many other high value textile stocks are ruling at 20-22 P/E multiple. So one can look for a target of Rs 475 in next six months," he said.