Below is the edited transcript of Tulian's interview to CNBC-TV18 .
Q: Which stocks are you going to place your bets on?
A: I am bullish on a number of stocks, the first one being Pantaloon. Pantaloon has seen some accumulation for the whole of last week. This indicates that any news flow of the company divesting their stake in the General insurance and life insurance in the near future can be seen to be a big trigger for the stock. It can make it move beyond Rs 200.
Another stock that I am positive on is Godrej Industries. It is holding sizeable stake in the Godrej Consumer Products which has been hitting 52-week highs. They are also the promoter or holding company of Godrej Properties which is also doing quite well. So, I am expecting an upside of about 5 percent in this stock.
The third stock which comes in my mind is Adani Enterprise. The kind of beating which we have seen in this stock is because of the erosion in the valuations of Adani Power and Adani Port, both subsidiaries of this company. With the OFS frequently happening in Adani Enterprise, the stock now seems to have bottomed out. I expect a similar jump like we saw in Orchid Chemicals. I will not be surprised to see a rise of even 10 percent in the whole of March series.
The last stock I would select from the midcap space is SpiceJet. The Jet-Etihad deal which is expected to happen in the next week is bound to rerate this company also because of the positive bias. Once we will get to see the valuation, which is expected to be anywhere between Rs 675-700 per share for is going to rerate this stock also vastly. This can make the stock move by about 15 percent in one go or maybe in the very near-term once the news is out.
Q: What are your views on MMTC?
A: When MMTC was ruling at about Rs 800 plus I had given my view that I do not see a value beyond Rs 200 for the stock. If you really see the Earnings Per Share (EPS) of Re 1, it has a face value of Re 1. Even if one sets the floor price at about Rs 150-175 that will be seen quite stretched with a market cap of Rs 15,000-17,000 crore. So, as of now, I do not think that stock has the potential to really hold the level of even Rs 175 also. But it will be very interesting to see what kind of floor price is being set by the government, which will be seen quite low. It maybe anywhere between Rs 150-175."
The share touched its 52-week high Rs 890 and 52-week low Rs 295.25 on July 5, 2012 and 08 March, 2013, respectively. Currently, it is trading 65.89% below its 52-week high and 2.81% above its 52-week low. Its market capitalisation stands at Rs 30,355.00 crore.
The company's trailing 12-month (TTM) EPS was at Rs 1.13 per share as of Dec, 2012. The stock's price-to-earnings (P/E) ratio was 268.63. The latest book value of the company is Rs 14.21 per share. At current value, the price-to-book value of the company was 21.36. The dividend yield of the company was 0.08%.
Q: The market saw a lot of beaten down realty, infrastructure, even pharmaceutical names like Orchid Chemicals, Alembic Pharma etc. see some good gains last week. Any incremental buying or upmoves that you expect to see on any of the midcap names next week?
A: A lot of ideas are prevailing in the real estate stocks. If one keeps a selective call, one could look for the Peninsula Land or Bombay Dyeing because those stocks look good.
If one is are taking a trading view from hereon, one should remain prepared to book profit of maybe 1.5-2 percent. However, the midcap ideas do really remain quite good going forward. I am positive on Rashtriya Chemicals and Fertilizers (RCF). The stock can give a return of about 10 percent in next 10-15 days. So, these are the ideas which one has to pick and choose more in the non-index segments rather than the index one.