Tulsian on results: Rel Cap, SKS, Jain Irrigation & Pipavav

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Tulsian on results: Rel Cap, SKS, Jain Irrigation & Pipavav

SP Tulsian of sptulsian.com spoke to CNBC-TV18 about some stocks that are buzzing on the radar today. Check out his comments on Reliance Capital, SKS, Jain Irrigation & Pipavav.

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Excerpts from Bazaar 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 Rel Capital BSE | NSE 29/05/12 Are Mutual Funds betting on Rel Capital? Other Stocks in this news SKS | Jain Irrigation Systems | Gujarat Pipavav Port |

SP Tulsian of sptulsian.com spoke to CNBC-TV18 about some stocks that are buzzing on the radar today. Check out his comments on Reliance Capital, SKS, Jain Irrigation & Pipavav.

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

Q: What about the Reliance Capital numbers? How do you think the markets will react to it today?

A: Again very big disappointment because if you see their finance investments, it's the same old story, EBIT of Rs 19 crore against Rs 12 crore in Q2. No improvements are really seen coming in that segment which is the largest one, where Rs 7,000 crore capital is employed. The kind of run-up which we have seen in the share price in the last 15 days or so, definitely, the long positions that have got created will get liquidated. Results overall has been very poor because Rs 60 crore kind of PAT is definitely not encouraging at all on a consolidated basis. In spite of that, all their other divisions, whether you talk of commercial finance, insurance or maybe the asset management have not really disappointed.

Q: How would you approach a stock like SKS now, a 35% rally last week?

A: It seems to be returning back the kind of confidence which the management has given that in next two quarters, they will be able to turnaround a major portion of debt or exposure to Andhra Pradesh that has got written off. So obviously, the bottom seems to have formed. But I don't think that one can really expect the price to move beyond Rs 150 over the next six months because this is a typical stock which has extreme volatility on the either side. Hypothetically, if it starts seeing profit booking at Rs 140-145 levels, you won't be surprised to see it falling back to about Rs 100-110. So it may not be a comforting investment stock where one can take a view or may be a positional trader. But yes, one should look to trade looking to the trend, and I will cap the price at Rs 150, considering that management has indicated that in next two quarters, they will be able to turnaround.

Q: What did you make of Jain Irrigation numbers?

A: If you knock off two items- forex loss of Rs 70 crore and additional increase of interest by about Rs 30 crore - I don't think that there is any disappointment because as far as interest burden is concerned, we all know that the kind of rising debtors and all that is putting pressure because of the finance cost. Secondly, exchange loss being notional and likely to get reversed in the fourth quarter, honestly, I don't see that any disappointment there, even on YoY or on sequential basis.

Q: Pipavav has gone off the radar a bit, but what did you make of the numbers that it reported over the weekend?

A: Topline is showing respectable growth, but the concern remains on the bottomline because it is not matching up with that. I don't think that you have any other increase in interest, depreciation and all that. So the profitability has really to catch on. Except for that, I don't think that the results have anything disappointing or anything concerning.