Tube Investments may move to Rs 450: SP Tulsian

SP Tulsian of sptulsian.com told CNBC-TV18, "If you see that 14 percent monetisation in fact that is giving a lot of clarity because this Rs 882 crore works out to Rs 46 per share and in spite of that Tube Investments of India will be holding 60 percent in that general insurance corporation. That means you have about Rs 200 per share.""If you see the performance of the insurance business, it has been doing very well, closure to the top-line of Rs 2,000 crore, EBIT of about Rs 200 crore from insurance company. So, I think that is going to give the independent valuation now in the sum-of-parts method.""If you take the overall EPS of about Rs 22 for FY16 on a consolidated basis again I am referring to already companies are debt free, they have a cash of about Rs 200-250 crore. Now this Rs 880 will make it about Rs 1,100 crore cash surplus company. So, Rs 200 per share will straight be given as value for their general insurance 60 percent stake. So, I think that is why the stock is getting re-rated and I won’t be surprised to see the stock moving to closure to about Rs 450 because that straight Rs 40-45 jump will now get added to the valuation of the stock," he added.