Positive on Arcotech, target Rs 460 in 6 months: SP Tulsian

SP Tulsian of sptulsian.com told CNBC-TV18, "Arcotech is a very interesting company, they are into mainly into non-ferrous alloys. They make ingots, strips, foils, rods, connectors and all sorts of things. In fact they are supplying the coin blanks and the key blanks to the auto major and to the Indian government. Last year or in this last one year they have supplied 7,100 tonne of alloys or the coin blanks on which the five rupees coins are printed or made by the India Government Mint.""The plant of the company is in Bawal which is in the close proximity of Maruti Suzuki, Hero Honda, and Hero Motocorp; they are making very micro thin films and strips also which are used in the engineering products. The company is also making the connectors and the kind of fall which we have seen in the prices of non-ferrous metals, whether you talk of copper, zinc or may be aluminum, that has been helping the company a lot," he said."It is a very highly capital intensive industry and that is the reason I am expecting that probably in FY'16 it can be an EPS of about Rs 18 while FY'17 can be Rs 21 and 22. If you see the equity pattern, Rs 21 crore is equity face value of Rs 10, net worth is close to about Rs 185 crore and debt is Rs 260 crore." "So, this is a very interesting company and because of the fall in the non-ferrous metals, I am quite positive on the stock. So one can look for a target of Rs 460 in next six months or so," he added."If you are an investor then probably one can take a call in Bharat Forge but if you are a trader and if you keep looking to the daily volatility then probably this will disappoint you. From an investment point of view I am quite convinced on the stock."