Poor RCapital results, IGL may touch Rs 325: Tulsian

On IGL, he says, that the case is building up positively in the favor of IGL . The Delhi High Court order has been very clearly in the favor of IGL. So I am expecting a positive outcome. If the order comes in the favour of IGL then the stock may move to Rs 320-325.

Below is the edited transcript of his interview to CNBC-TV18.

Q: What is your view on Reliance Capital's numbers and how you would expect the stock to react today?

A: The numbers are very poor. Things are confusing on standalone and consolidated platform. On standalone, due to increase in interest PAT is down by Rs 70 crore and mark-to-market losses of Rs 55 crore. But on the consolidated numbers, the EBIT shown by the finance and investment division stands at Rs 25 crore for this quarter.

One may see dull or flat result soon a consolidated basis or maybe the flat result. If one makes the analysis, stand-alone results have been very bad. PAT or PBT is down by about Rs 125 crore largely because of these two factors but that gets adjusted largely in the consolidated operations because of EBIT finance.

In my view the results are bad because of increase in the interest liability as well as non-improvement seen in the finance and investment portfolio where a major chunk of capital of the company is employed to the extent of Rs 10,000 crore.

Q: What is your view on IGL?

A: The case is building up positively in the favor of IGL because the notices have been issued by the Supreme Court to PNGRB and now the case will be heard. I don't think that much relief is expected by the PNGRB order in favor of PNGRB. The Delhi High Court order has been very clearly in the favor of IGL. So I am expecting a positive outcome. If the order comes in the favour of IGL then the stock may move to Rs 32-325.