SP Tulsian, sptulsian.com advice high risk traders to enter in IFCI around Rs 35-40.
Tulsian told CNBC-TV18, “A couple of weeks back there was a proposal from IFCI that they want to repay Rs 400 crore to the government for redemption of the optional convertible debentures which would have been possible only with the approval of RBI. But since SEBI has approved or given the permission to go ahead to the government without making any open offer, I think that door is closed.”
He further added, “If one take that fundamental call that Rs 923 crore of the convertible debentures are going to get converted into the equity shares in favor of the government book value and price earning multiple the stock comes to have a fair value somewhere at 23-24. So it is just a matter of time and again if the equity conversion happens the stock will again correct to Rs 24. But for some reason if IFCI is able to win over and repay Rs 400 crore to the government either by persuasion or by the legal process then the share can move to Rs 32-33.”
“Tulip Telecom, generally we have been seeing these stocks this is a typical case with many of these stocks that after seeing 15-20 lower circuits you start seeing them going upward. The case in point again is Kemrock Industries, Plethico pharma, these kinds of stocks. So that can happen again with Tulip Telecom also because you never know when the upper circuit will start, probably that may happen at anywhere between Rs 35-40, so that could be an entry point for the high risk trader, I won't call them as investor.”