Jul 15, 2011, 06.33 PM IST | Source: CNBC-TV18

Check out: SP Tulsian's bets on power and jewelry stocks

SP Tulsian of sptulsian.com, in an interview on CNBC-TV18, gave his views on the power and jewelry space. He is bullish on stocks like REC, PFC and Su-Raj Diamonds.

SP Tulsian of sptulsian.com, in an interview on CNBC-TV18, gave his views on the power and jewelry space. He is bullish on stocks like REC , PFC and Su-Raj Diamonds .

Below is a verbatim transcript of his stock comments. Also watch the accompanying video.

On REC and PFC

A concern on REC and PFC stocks has got reduced after the meetings on SEB reforms and efforts taken by the Delhi ministry. I dont think that problem is likely to be so much and in fact the old liking for both the stocks PFC and REC seems to be partly returning back.

PFC has been under accumulation for last 15 days because post FPO, we have seen huge selling happening by the new allotees in that stock. However, since then the value buying has started happening. Same thing has been seen for REC because it has languished between a range of Rs 185-190 for quite some time and that was seen more as an accumulation zone rather than the negative bias prevailing upon the stock.

So, I dont think that there are any concerns on the fundamentals and whenever we try to take a breakup of the exposure to the apprehensive states or where the bad debts can come, they seem to be getting reduced now. So, one can take a fundamental view on the stock even from a trading point of view and the opportunity lies in favour of going long in both the stocks.

On Su-Raj Diamonds

I have not been able to pin point the reason for this upside but I have been maintaining a positive view because if you see the quality of the organization of the company, four generation presence, the financials or the fundamentals, all these things have been giving you a positive view on the stock.

Moreover, the overall gem and jewelry space has been doing quite well. There are about 5-6 stocks which have all been doing quite well for past may be 3 to 6 months. So maintaining positive view on it but I dont know the reason for todays rise of double digits.

Also read: SP Tulsian bullish on TCS, PFC; sees good upside

On Amara Raja Batteries and Exide

A: I have been maintaining positive view on both the stocks. If you recall post Q3 results of Exide Industries the stock has corrected by Rs 120 and since then I have been giving a buy call. Amara Raja Batteries has been doing quite well on the two wheeler batteries which they have introduced and overall the margin of these companies has seen an improvement.

This is largely because of the stability in the Zinc prices because 70% of the raw material of both these companies are constituted by the Zinc. There has been quite a good stability in Zinc prices and if you do not have the volatility in the Zinc prices it is very easy for these companies. Generally there always has been a lag effect of about three months they get an increase from the OEMs.

Incase the Zinc prices go up, so that has been the bigger advantage to both the companies and I maintain my positive view. I wont be surprised to price of Exide Industries going to about Rs 200 in next four- six months but yes for Amara Raja it should take a halt at about Rs 265-270 may be in next couple of months.

On TTK Prestige

A: The valuations of TTK Prestige have factored in all these things because sometimes you feel that probably the stock is ruling at its expected earning which has been fully factored for FY12 and partly factored for FY13. If we dont see this kind of growth posted by the company then the stock can correct. But fortunately the Q1 results have been quite good.

The stock has shown an upside but I dont thin that beyond Rs 3,000 you have leg for the stock to move up. It may remain in a trading range of anywhere between Rs 2,600-3,000 but once it breaches Rs 3,000 may be post Q2 results then one can review whether the growth posted by the company is really extraordinary and can really get extrapolated. For the time being it should remain in a tight range of Rs 150.

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