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Check out: Stocks that SP Tulsian is positive on!

SP Tulsian of sptulsian.com is positive on Bharati Shipyard, Pantaloon, Provogue, SKS Microfinance and MCX IPO.

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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 BharatiShipyard BSE | NSE 30/05/12 Are Mutual Funds betting on BharatiShipyard? Other Stocks in this news Pantaloon Retail | Provogue (India) | SKS Microfinance |

SP Tulsian of sptulsian.com is positive on Bharati Shipyard , Pantaloon , Provogue , SKS Microfinance and MCX IPO.

He thinks it's a matter of time that FDI will come in the multi-brand retail. "Pantaloon, Provogue can further move on from here, maybe by about 20-25%," he adds.

According to Tulsian, MCX IPO is unque. "At the upper band of Rs 1,032, one can expect a return of 20%," he adds.

Profit booking, he says, can bring SKS down to about Rs 125. "But if somebody can enter in the stock at those levels, one can expect a price of Rs 160-170 in next couple of months or so," he asserts.

Below is the edited transcript of his interview on CNBC-TV18. Also watch the accompanying video.

Q: Any shipping stock would interest you now?

A: The Committee of Secretaries is meeting for considering the subsidy issues. Stocks have run up a lot. Generally, we have seen that there is nothing concrete coming out of these meetings. I don't think that Committee of Secretaries is really authorised. They have the authority to just make the recommendations. Sometimes even those recommendations get postponed.

I don't think that one can now play on further momentum on all these stocks, except for ABG Shipyard. That has been strongly holding for quite sometime. One can take a trading view on that and maybe Bharati Shipyard. That has taken a huge beating and we have been seeing the value buying emerging at the lower level. So, one can add Bharati Shipyard in that category. But, purely from this news point of view, I won't be playing on the further momentum in the sector or in the stock.

Q: After a very long time, we are seeing an IPO which will be hitting the markets. I think the first good one perhaps after six months or so. How will you see MCX IPO? At the valuation band that they have given, would you advise people to go ahead and buy it?

A: For a change, we are seeing a good IPO. So, let's hope that this IPO is capable to revive the sentiments for the primary market also. The price band given by the company is very wide, it's at 20%. Generally, that creates some uncertainty in the minds of the retail investors. But I will take my view on the upper end of the price band- Rs 1,032. I take that as the ultimate price likely to get discovered.

If you see the financial performance of the company, they have shown a growth of about 66-68% in first nine months of FY12. For FY12, the company should be able to post an EPS of close to Rs 60. Now, going forward, they are confident of posting a 25% CAGR, that's what I estimate for next maybe three years or so. So, next year, FY13 is likely to have an EPS of Rs 75.

On a historic PE multiple of 17, on the forward earning of about 13-13.5, I think issue looks reasonably priced at Rs 1,032. This is a unique IPO. So, there is going to be lot of institutional investors' appetite. Taking all those into account, at the upper band of Rs 1,032, one can expect a return of 20%.

Q: Is it time to start looking once again at any of the textile retail names?

A: Whenever you have any positive policy announcement like FSA for power generator companies, market starts expecting pending agenda like multi-brand retail FDI clearance to come up again. After the UP election results on March 6, with a combination of Samajwadi Party and Congress coming in, the FDI in retail is likely to get cleared. In anticipation of that, we have been seeing buying. The two stocks, which always move on the hopes of this positive development expected, are Pantaloon and Provogue, followed by maybe Shoppers Stop and CESC. So, this is the reason. I think that it's a matter of time that FDI will come in the multi-brand retail. Both the stocks can further move on from here, maybe by about 20-25%.

Q: SKS Microfinance had a straight rally from levels of about Rs 90 to about Rs 140. Today, it's corrected a tad bit. Should one consider buying into this dip?

A: I think Rs 125 is the right level where one can again think of moving back into the stock. Generally, after a huge run-up of about seven-ten days, the stock takes a pause and maybe the profit booking comes in. So, this profit booking can bring it down to about Rs 125. But if somebody can enter in the stock at those levels, one can expect a price of Rs 160-170 in next couple of months or so.