Stock Idea: Lakshmi Vilas Bank

Lakshmi Vilas Bank can move to Rs 145 in the next four-six months time, says SP Tulsian of sptulsian.com.

Tulsian told CNBC-TV18, "Lakshmi Vilas Bank has shown a very good performance for Q4. If you take their overall FY11 performance, the bank had posted an EPS in double digits that is Rs 10 plus and their fall in the NPA was at 4% plus as of March 31, 2010 and has fallen to less than 1% to be precise at 0.91%. They have a total 273 branches with presence in 16 states. If you take the marketcap of the bank which is at Rs 440 crore that means each branch is valued at a valuation of Rs 1.5 crore."

He further added, "If you see the financials or the provisioning coverage ratio which is at 77% against the stipulation of 70% and apart from improvement in working in Q4, the bank will be aggressive in opening more branches going forward. The same kind of profitability is likely to continue and I won’t be surprised if I see an EPS of over Rs 12 plus for the bank in FY12. The stock looks quite good at Rs 112. I am expecting that probably it can move to about Rs 145 in the next four-six months time."

Stock Idea: Mayur Uniquoters

Mayur Uniquoters can test Rs 400 in the next six-eight months time, says SP Tulsian of sptulsian.com.

Tulsian told CNBC-TV18, "Mayur Uniquoters is a very established company which makes synthetic leather. If you see their financials, the company has posted an EPS of close to Rs 45 for FY11 with PAT margin of close to about 10%. Presently, the company is operating with a plant capacity of 1.4 running million meters per month. Now they are raising their production capacity from 1.4 million per month to 1.9 million per month with the increased capacity operational from July."

He further added, "Their topline has seen a growth of 50% in FY11. Their total income was about Rs 250 crore while the bottomline grew by about 56-57%. The best part is that they are debt free and have a cash balance of about Rs 24 crore in the books. The expansion will get implemented in this cash balance and since their EPS for FY11 is Rs 44-47, I am expecting the expansion to happen by July. That will also contribute for about eight-nine months working in FY12. One can safely assume that they should be able to post an EPS of at least Rs 60."

"The product has very good demand and is supplied largely to auto seats and in furnishing. Their customers are Maruti, Honda, Hero Honda which they supply synthetic leather too. The share is viable at a PE multiple on historic earning at about 5 PE multiple. If I take the forward earnings it is ruling at 3.5-4 PE multiple and debt free status with promoter stake of 75%, this is quite a safe and good growth oriented stock. I expect a price of Rs 400 in the next six-eight months time."