Bullish on Gammon Infra, Titagarh Wagons: SP Tulsian

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In an interview with CNBC-TV18, SP Tulsian, sptulsian.com, discusses various stocks and gives his outlook going forward.

Here is a verbatim transcript of the exclusive interview with SP Tulsian on CNBC-TV18. Also watch the accompanying video.

Q: Is 9 am from Monday a done deal or do you expect any surprises from the AMNI press conference later in the afternoon today?

A: I don't really expect any surprises and that looks to be a done deal. Probably, in 2010 we should see the day even getting extended to 5 pm. But for the time being I see this happening from 4th January at 9 am.

Q: Any thoughts on the small steel companies, which have been going up since last couple of days? Do you track any of them?

A: Yes, I do track them. Though Lloyds Steel , Sunflag Iron and Gallantt Metal have a different product profile, whenever I see the value of Ispat Industries at Rs 21-22 with a lot of trading interest in that stock, then I hold the view that all these stocks deserve a better value. Ispat Industries , which didn't have the track record or the consistency and has been heavily leveraged and if it can rule at Rs 20-21, I don't think there is any reason for such stocks to rule at such low levels. In case of Lloyds Steel, we are seeing IDBI converting a part of their loans into equity and even promoters going for warrant conversion and if you see such triggers or news coming in some of the stocks or a couple of them, that rerates all these smaller kind of stocks in the same sector.

Q: What about Reliance Power ? We have seen some activity on that one in last couple of days, after the news from the Rosa Plant how would you approach that now?

A: I wouldn't give any credence honestly to the news of Rosa plant because if we see the bouquet of 7,000 MW capacity, which they have referred in their RHP and of that they have started the production of the part capacity. This is as per schedule, though we have been hearing that the plant is 2-3 months ahead of schedule. But if you have a capacity 7,000 MW and one of your capacity to the extent of 600 MW is getting operational and when you have the bunching of all the power issues like Adani Power, JSW Steel and NHPC, I don't think that there is really any excitement in the stock. But I honestly won't give a price beyond Rs 160. When the Dadri disappointment came at that time we have seen this share correcting close to about Rs 140, so the stock is just trying to recoup the lost ground. I don't see the value beyond Rs 160 in the stock.

Q: Do you keep an eye on any of these toll players like Gammon Infra ?

A: Yes. IRB Infra and Gammon are the leading players. When we compare Gammon Infra and IRB, we see good value in Gammon Infra. Maybe because of the bad workmanship of its parent company the stock has been taken a beating. But if we compare it with IRB infra, I think that makes a good buy at Rs 21.