May 04, 2012 06:50 PM IST | Source: CNBC-TV18

Stay away from IRB Infra: SP Tulsian

SP Tulsian, advice traders to stay away from IRB Infra.

SP Tulsian, advice traders to stay away from IRB Infra.

Tulsian told CNBC-TV18, “IRB Infra, I really want to stay away because as I have expressed earlier also that I had my reservations on the valuation on the stock and when you have these type of news getting cropped up of the CBI inquiry, criminal investigation against the promoters and all that that can really work out to be very bad.”

He further added, “We have seen that those things happening and the erosion in the share price of many companies, I don’t want to discuss the names of those companies here where the erosion has happened to the extent of 75-80%. So, I am saying that that kind of erosion can really happen in the stock price, but I don’t think that one should really be too adventurous to enter into the stock maybe just that it has corrected by about 25% in the last couple of days or so.”

Educomp, there have been talks of this all corporate governance issues, but I take that report more on the lines of the Veritas report, which we have seen on DLF where the extreme view have been taken. Definitely that there are concerns of all sort of things, we have been hearing in respect to the company that all kind of adjustments in revenue or maybe the rising book debts, which has been adjusted and all sort of things, but yes, probably the effect of that can take the share price to fall to Rs 155-160 or so, but I won’t be taking the targets as given in the report to be the realistic one.”

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