Share Bazaar News India

Investment Advisor SP Tulsian is of the view that Manaksia is an interesting stock for investment.

Tulsian told CNBC-TV18, "Manaksia has 15 plants in India and 5 plants abroad, which 2-3 of them are in south Africa. They are into the specialized business, they have the special metal packaging, and they have their MNC clients and all that. It’s an Rs 2 share, when they went public, it was a listed company again closely held and virtually the entire shares were held by the promoter, so there was no floating stock.”

He further added, "They went public and diluted the stake of public to about 25%, an expected of about 13-14 can be expected for this current year FY08. Since their 2-3 projects will be going on then maybe FY09, having their own captive raw materials and they are acquiring the mines in overseas also. All these things can take their EPS to about 17-18 for next year, the share is virtually ruling at Rs 72-73 which is discounted at forward earnings by 4 times and historic earnings by 5 times, which makes it very interesting. The promoters are quite capable, if you see the growth of the company over years, they have been increasing plants, every year and now they have about 19-20 plants to the fold, at various locations. So at these levels, this is definitely a very interesting stock to make investments."

Source: Moneycontrol.com