SP Tulsyan has picked up the share of Prakash Industries as a top pick and with a target of 145 rupees, it has been advised to buy from the next 6 months perspective. The company does business of steel making. The company does business of steel making. The company’s annual production capacity is 11 lakh tonnes. The company has got a coal linkage of 13 lakh tonnes for 5 years and it will save him Rs 70 crore per quarter. At the same time, the company has got 50 years of mining lease for iron and manganese side. The company produces 55,000 tonnes of PVC pipes annually from the Uttarakhand plant.
According to SP Tulsyan, the company’s earnings in the financial year 2017 is Rs 2,420 crore and profit is Rs 81 crore. In the financial year 2017, the company has registered EPS of Rs 6 and equity of Rs 140-150 crore. The net worth of the company is Rs 2200 crore and loan is Rs 600 crore. PE is around 11-12 rupees. Looking at all of this, it seems that Prakash Industries’s stock can go up to Rs 145 by the current price in the next 6 months.