Jun 08, 2012, 05.42 PM | Source: CNBC-TV18
SP Tulsian of sptulsian.com, says that he has a positive view on metal stocks, infrastructure stocks and JM Financial. In ADAG bag, he is only positive on Reliance Infra.
SP Tulsian (more)
CEO, sptulsian.com | Capital Expertise: Equity - Fundamental ,IPO
Below is the edited transcript of his interview to CNBC-TV18. Also watch the accompanying video.
Q: How would you view India Cement after its name being dragged in scam?
A: Generally, rallies in India Cement are not sustainable. Any upside which comes in this stock gets fizzle out easily. News of India Cement’s name dragged in Jagan scam and overhang of much-awaited CCI order in next couple of weeks will also slightly impact the company. As a result of which the share is ruling weak.
Q: What is triggering Sun TV stock at this stage which is up 9%? Is it because it’s been heavily oversold that there is some amount of technical pullback that’s inevitable?
A: It’s a combination of both. Earlier it was expected that digitization will be extended by a month from June 30. And we are seeing renewed interest in Dish TV and Sun TV due to shortage of set top boxes and a forced move by the subscribers to go for these companies also. Apart from this, short covering is also one factor. In last two weeks the stock has steeply corrected. We are bound to have the combination of both, the renewed buying coupled with short covering.
Q: How would you approach metal stock?
A: I have a positive view on metal stocks except for Novelis, which has shown dull performance and correction in stock at Rs 105-110 level. But, since then, this stock has again come on the radar of investors and traders. The stock is expected to move in the range of Rs 128-130 levels. Weak rupee is always a helpful for non-ferrous metal makers. Overall, I have a positive view on this stock. Any correction of Rs 2-3 can be used as an entry point to buy this stock.
Q: Do you expect move upside in L&T ?
A: L&T will be the biggest beneficiary from the fallout from PM’s focus on revival of infrastructure sector. Analysts are having no apprehensions on L&T’s order execution capability and expectation of strong order inflow in next three months is pushing the stock forward. IVRCL , Nagarjuna Constructions, Ramky Infra , JP Associates and L&T qualifying as a good stock from the trading and short-term point of view.
Q: What’s causing interest around ADAG stocks?
A: We are only seeing pure trading interest in ADAG stocks. I am positive on Reliance Infra however I have a negative and cautious view on Reliance Power and the same applies to Reliance Capital . R Comm is the second best stock after Reliance Infra.
Q: JM Financial is up about 10%. Indiabulls Financial is holding up in the green. Do you find theses midcap broking-type financial companies attractive?
A: No, I am not too positive in this space. JM Financial is currently ruling at Rs 15, which is quite low when compared to Rs 40 which was the price last year. Current price can be used as a point to enter into the stock with a view of about couple of months with hopes of some corporate developments. Apart from this stock, I won’t be too comfortable with Indiabulls Financial or any other financial stocks.
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