In an interview to CNBC-TV18's Latha Venkatesh, Sonia Shenoy and Anuj Singhal, SP Tulsian of sptulsian.com shared his reading and outlook on the market and also gave recommendations on various stocks.
Below is the verbatim transcript of SP Tulsian's interview to Latha Venkatesh and Sonia Shenoy on CNBC-TV18.
Latha: What did you make of the commentary by Sun Pharma’s management and the numbers?
A: I won’t be calling numbers as bad. Commentary has given some kind of comfort. So maybe one can say that the results are seen to be flat with not much disappointment seen on the result front.
Sonia: Good numbers coming in from Voltas and MOIL. Both are stocks that you have tracked closely in the past, any of these names that you would recommend putting fresh money into?
A: Voltas -- the unitary cooling as such has posted the numbers on the expected line but if you see the project engineering, that is a classic case of turnaround and always Q4 and Q1 are the best results for Voltas because of the air-conditioning. So I think Voltas’ numbers are extremely good for the last couple of weeks, the stock has been holding even ahead of the numbers. So I am keeping highly positive view on Voltas and I won’t be surprised to see the positive bias continuing for the next couple of months as well not only for the results because generally for results positive bias remains for a couple of days and you see the profit booking coming in but the structural story for next two quarters back to back are seeing quite positive.
Coming on the MOIL, excellent numbers because if you see the operating profit of more than Rs 100 crore against the sequential loss of about Rs 10 crore, that itself speaks for the performance of the company.
Now what is happening on the manganese ore front that people are little circumspect because the prices have reduced by about 15 percent in February but you should not consider the peak, which we have seen in the month of January. The Manganese ore prices have been rising from the month of October and we have seen a rise of 60 percent. So even if you take a fall of about 15 percent, which has been affected by the company maybe because of the global supply resuming from the Australian mines and all -- I am just taking a global scenario -- but if you focus only on this company, the equity has been recently reduced by the government of India having reduced their stake and overall perspective if you take a situation on the stock. EPS of 7 plus for the quarter. I think it is a bumper numbers. As I said, Rs 100 crore operating profit and I won’t be too much disappointed to see for Q4 numbers also, Q3 cannot be taken as the base for Q4 because definitely when the price reduction has happened in February, you are bound to see some kind of fall but the quantity offtake -- increased quantity and the mild reduction is keeping the positive bias continuing on the MOIL.
If you take a call on the MOIL, you are keeping a positive bias on many other similar natural resources, ferrous metal stocks also like NMDC, Indian Metals and Ferro Alloys or maybe Sandur Manganese and Iron Ores kind of things.
Latha: Jain Irrigation?
A: The kind of kicker which we are expected to see from Jain Irrigation is not seen coming in. so maybe I would say that the results again are on the flattish kind of things. Neither having disappointed nor seen having pleased the market.
Latha: Two stocks, Bannariamman Sugars and National Fertilizers (NFL), I assume you will track both, numbers looked very good, what would you say?
A: Bannariamman Sugars -- I am not keeping a positive bias because in Tamil Nadu they will be having the lower production. In Tamil Nadu you have a longer season, in fact the sugar mills always have two seasons, working is about 240 days. Bannariamman has been a consistent performer and when you compare the results with Uttar Pradesh (UP) based sugar mills, in isolation you may find that to be the good numbers but I won’t be taking a positive call because Tamil Nadu is going to see a drop of about 22-25 percent in the sugar production in this season.
Last season they had produced about 13 lakh tonne and I don’t think that this year they are going to touch it more than 10.5-11 lakh tonnes. So keeping the neutral stance on Bannariamman Sugars.
I have always kept the neutral view or negative view on the National Fertiliser (NFL) for the simple reason that urea has not seen a good kicker. Two of their plants are closed which were earlier operated on naphtha. So I am not keeping a positive stance on NFL as well.