Check out: SP Tulsian's picks for the day

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Check out: SP Tulsian's picks for the day

SP Tulsian of sptulsian.com gives gives multibagger ideas which will add value to your portfolio.

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Excerpts from Closing Bell on CNBC-TV18 Watch the full show » ALSO READ See what other experts are saying about markets See what FIIs are saying about the markets See what Udayan Mukherjee is saying about the markets Tata Steel BSE | NSE 30/05/12 Are Mutual Funds betting on Tata Steel? Other Stocks in this news Suzlon Energy | GMR Infrastructure | GVK Power & Infrastructure | Adani Ports and Special Economic Zone | Sterling Biotech | Shree Ashtavinayak Cine Vision | Sterling International Enterprises | GTL Infrastructure |

SP Tulsian of sptulsian.com joins CNBC-TV18 to give multibagger ideas which could add value to your portfolio. He picks Suzlon, GMR and GVK on a horizon of four-five months and says that they will return well considering their growth prospect. However, the pain in Tata Steel due to concerns regarding Corus is going to persist a while longer, he says.  

Below is the edited transcript of his comments. Also watch the accompanying video.

Q: We were just talking about Tata Steel and the way that stock is falling over the last few days because of concerns on Corus. Are these problems and fears justified in your eyes?

A: Yes, it is justified. See the behavior of all the steel or all the metal stocks, which has a domestic presence. Not much worry is seen for those companies and if they are correcting, obviously you cannot spare any company having exposure to the global operations. For Tata Steel, the mix of or the weightage of Corus is maybe 75% against the domestic operations of 25%. So in my view, this pessimism or this apprehension is justified for the stock and I don't see any respite coming in for the stock in the near-term.

Q: A quick word on Suzlon ; post results a lot of people got a bit optimistic saying Suzlon might up to Rs 70. But it's come all the way back to Rs 40 and it's down 11.5% today. Would you buy it here?

A: I will take a buy call on this. But I think the correction has happened largely with the presence of Suzlon because they will be now acquiring 100% of RE Power. Infact, if you see last week, there were huge long positions getting created because of their decision to buy out RE Power. After the deal, the company will have an advantage of USD 400 million apart from RE Power's technology. Plus they have been selling their Hansen's stake of over 26%.

So all those things were very positive and as you have rightly said people have started taking a call that it will move to about Rs 70 in the very near-term, on the lines of Punj Lloyd because both the stocks have the same trading pattern. So this is more to do with the long liquidation happening in the stock because the small time investors or the traders have been very active in this.

But yes, if somebody can really take a time horizon of four-six months, I think the share can really reward. The company has gone ahead with enabling a resolution to raise Rs 5000 crore and the promoters are going to deleverage the balance sheet of the debts, which they are sitting to the extent of about Rs 12000 crore.

So taking all this into consideration my view is positive, but this can't be for a series or for a week. If you are playing in the stock as a trader, your stop loss gets triggered and you don't have the capacity to pay mark to market. So this could be a stock more appropriate for an investor who can take a call on the stock with time horizon of four-six months.

Q: Do you think GMR , GVK at levels like Rs 28 and Rs 17 are showing signs of a bottom formation or you can't be sure yet?

A: The management of GVK has presented a rosy kind of a picture for their Mumbai and Bangalore airport. It is seen that they are all on the progress path and EBITDA is quite good for both the projects. Similar is the case with GMR Infra. GMR moving out of InterGen shows sincerity or an effort on part of the management to deleverage their balance sheet. One has to really watch the results. In my view, all these seem to have bottomed out, and probably in next three months, if we don't see any further rate hike, things will become better for these companies. The infra companies, which have rich assets in their fold like GVK, GMR Infra and Mundra Port are going to see a big upside, maybe to the extent of 25-30% once you start seeing these kinds of indications.

Q: Another name is Sterling Biotech , any reason why that stock is coming off 15-20%? Have you heard anything about promoter pledges being sold or anything like that?

A: I have been maintaining my view on this stock as being very apprehensive. In fact, I will compare this stock with Shree Ashtavinayak . 18-24 months ago, when Shree Ashtavinayak used to rule at Rs 500 plus, similar kind of news spread in the market.

It is correct that all financing in Sterling Biotech as well as in the Sterling International Enterprises is being done by the promoters. The market cap of Sterling Biotech is huge and so is the case with Sterling International Enterprises. So finance is absolutely not an issue for the companies. The guidance of the company was that they will return 24-30% apart from a margin of three times the present market value. So probably, it was expected that any kind of fall is not going to happen.

In such a situation, if promoters are not able to make good the losses, you can see this stock behaving on the lines of Shree Ashtavinayak which happened a year back, or GTL Infra which has happened a couple of months back.