Pantaloon is good bet, watch United Spirits: Tulsian

Of the companies slated to announce their results next week, United Spirits is the most interesting on the results that it will announce and hopes of any other news-flow that it might bring about.

Also Read - GDP, rupee, inflation, petrol: Is Nifty in for a knockout?

Tulsian is disappointed with Crompton 's performance and advises investors to stay away from UP-based sugar companies. He expects Coal India to post positive results and predicts that the rollback in the petrol price hike to be by about Rs 2.

Below is an edited transcript of the analysis on CNBC-TV18. Also watch the accompanying video.

Q: A word on ITC and the results that it posted ?

A: It was expected that the results will be good, but I don't think that a sequential degrowth or marginal fall in the bottom-line and top-line will be accepted by the market.

There has been a sequential fall in the bottom-line would probably be seen as a slight or marginal negative by the market. Otherwise I don’t think there is any complaint about the results.

Q: Would you draw the line on Voltas at Rs 110 or do you think it has genuinely surprised investors?

A: I will draw my line at Rs 110 as a trader. But as an investor I will draw the line at Rs 120-124. I honestly did not expect it to cross Rs 100 today. Probably I thought that 9900 could be the barrier and market will take time to adjust the technical factors.

So as a trader or based on technicals,  I will take barrier as Rs 110, but from a fundamental point of view it has further upside and could move to about Rs 120-124.

Q: Is there any reason why GAIL has moved up 4.5% today?

A: It is upstream companies who will be sharing the burden again in the same ratio, 82% by ONGC, 11% by Oil India, GAIL about 7% .It is already known that Rs 18,100 crore of this will come from all these three put together.

So GAIL is seen to be the least affected after beating the stock has faced purely on a fundamental basis. So short-covering and value-buying are I think aiding the stock to move upwards.

Q: We have a  big earnings-announcements lined up next week beginning with Coal India on Monday. What are you expecting to hear this time around?

A: I expect better results. I have not taken an exact call in expectation of better results from Coal India on Monday.

Q: Do you expect a meaningful rollback at 5 pm today? Jaipal Reddy is to address the media. What do you think will be the outcome?

A: There is an increased likelihood of a rollback of about couple of rupees on petrol, maybe Rs 2.50 on the higher side, otherwise it is likely to be about
Rs 2.

Q: Crompton is down about 1% and this week it has lost about 7% or so. Is the market pricing in some weakness in the earnings?

A: That’s what it looks like. If you see the Q3 results, there is no point in taking a Y-o-Y call on the expected results of the company. The third quarter has really been very bad.

The EBIT, due to the poor performance of power sector division, which contributes 67-70% to the top-line, shrunk to as low as 2.5% after ranging in double- digits.

I expect a substantial improvement in the EBIT of the power system division by a6-6.5%. The consumer division has always been flat, but the industrial system division should also show some improvement, but there is not much concern on that account, because both divisions contributing only 12-13%.