Today HDIL cracked 13 per cent and was among the top real estate losers. In an interview to CNBC-TV18, SP Tulsian of sptulsian.com said that he has been seeing the profit booking in all the real estate stocks.
Today HDIL cracked 13 per cent and was among the top real estate losers. In an interview to CNBC-TV18, SP Tulsian of sptulsian.com said that he has been seeing the profit booking in all the real estate stocks. He believes, specifically in case of HDIL there were a lot of trading positions built and thus the stock has shown good up move.
Tulsian sees HDIL management’s commentary as comforting words and considers that it may not fall further from hereon.
Below is the edited transcript of his interview to CNBC-TV18
Q: What is happening with Housing Development and Infrastructure Limited (HDIL), it is getting smashed right now?
A: No news, in fact we have been seeing the profit booking in all the real estate stocks. If you see the Indiabulls Real also, it has not shown any kind of strength in spite of having posted very good numbers.
So, overall the profit booking has all been seen across the board whether it’s any stocks Peninsula Land, Anant Raj Industries or Unitech. However, specifically in case of HDIL there were a lot of trading positions built. The stock has shown good up move.
It’s difficult to pinpoint whether this is the liquidation of the trading position, long positions where the stop losses are getting triggered. This must have been put at various levels or is there any specific adverse news in respect to the company.
Q: Would you consider smaller companies like Ajantha Pharma or a Sasken Communication which have come with good set of numbers?
A: Definitely, Ajantha Pharma has posted very good numbers. They have shown an Earnings Per Share (EPS) of close to Rs 14 for the quarter. I do not know the status now, but it was frozen upwards 20 percent.
This is not the time to buy the stock, but in respect to the Sasken there has been no consistency. One can compare the performance of the Sasken more on the lines of Polaris. There they have shown two good quarters and two bad quarters.
So, I will definitely remain away from Sasken and Ajantha Pharma. I will not be looking to buy this stock at these levels.
Q: Do you expect a Syndicate like performance being repeated in few of the other mid-cap banks or do you think Syndicate Bank is an isolated performance?
A: I think that Syndicate looks to be an isolated performance. I don’t think that this kind of performance can be expected from any other bank. There are some weak PSU banks, like Indian Bank or Vijaya Bank. There performance has not been very good lately. However, one cannot expect this kind of slippage happening in respect to any other PSU banks.
Q: Bharti Airtel is up about 4 percent odd. There is no real change in the headline tariff. After what came out from the management, do you think there would be any impact on the margins?
A: I am too positive on these stocks. The run up which we have seen in anticipation of the tariff hike, it has not come on the expected line. Whenever we see such trading grip having started, much ahead on the expectations of these news flows it remains positive for quite sometime.
Like in case of Tata Motors, where people took very bullish call with a target of Rs 380-390 aand now started correcting. Same thing is happening in case of Public Sector Undertakings (PSU) banks.
I hold the same view in respect to the telecom stocks also. If one really sees Bharti and Idea, they have really moved much ahead of their performance. In spite of the fact that Q3 is generally a better quarter for the telecom companies, I think the valuation seems to have quite stretched for Bharti at this stage.
READ MORE ON SP Tulsian, sptulsian.com, HDIL, Syndicate Bank, JSW Energy, Bharti Airtel, Ajantha Pharma, Sasken Communication, Housing Development and Infrastructure Limited, HDIL, Zee Entertainment, Sun TV, Q3
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