Sunday 5 October 2008

20 Microns looks weak: Tulsian

Investment Advisor SP Tulsian is of the view that 20 Microns is looking weak.

Tulsian told CNBC-TV18, "20 Microns is very weak stock because if you see they have 4-5 very small plants, the turnover is now less than Rs 100 crore, even if I include their trading turnover though the management has been saying that it is an outsource turnover. But even the utilization of the fixed assets turnover ratio is less than 1; the company is quite heavily leveraged with a debt equity ratio of 1.5 to 1. If you see the fate of the other mining or mineral companies whether it is Ashapura Mines, Sesa Goa; they are all ruling at a PE multiple of anywhere between 3, 4 and 5. I do not think any meaning of giving any higher multiple for this company because this definitely falls into the smallcap category, may be once we will see this speculative momentum for sometime may be a week or so, ultimately the stock has to get settled anywhere between Rs 25-30."

Source: MoneyControl

Posted by Harsh at 23:52

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