Tulsian picks bleeding stocks, says will heal in time

110608 Investors following Larsen. Share this News with them.

0

Like this story, share it with millions of investors on M3

Tulsian picks bleeding stocks, says will heal in time

It has been a cruel week for the market and most big names have send a scare in the market today. However, in an interview to CNBC-TV18, SP Tulsian of sptulsian.com says biggies L&T and Reliance on a fundamental call will soon see a bounce back.

Post your opinion here

 

0

Tweet

Share on Tumblr

Excerpts from Closing Bell 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

It has been a cruel week for the market. European and US market cues send in the mayhem in the Asian indices. Most big names have send a scare in the market today. However, in an interview to CNBC-TV18, SP Tulsian of sptulsian.com says biggies L&T and Reliance on a fundamental call will soon see a bounce back.

"The weakness in the hardcore investors has brought the sell off. However, as soon as there is a recovery, stocks like L&T and Reliance will see a comeback," he says.

Today all sectoral indices closed in the red barring realty but Tulsian believes that there is no real renewed buying interest. "There are no fundamental reasons to initiate and move stocks like Indiabulls Real Estate ," he added.

From the small and mid cap space, Tulisan cherry picks, Jain Irrigation , Advanta , Monsanto , GSFC and Swaraj Engines . 

Below is an edited transcript of SP Tulsian's comments on CNBC-TV18. Also watch the accompanying video.

On L&T

L&T is now ruling at around Rs 1,550. It may fall to Rs 1,400 but in case of these stocks there are no concerns at all. There is not much of a concern on the exposure to the global markets or debt positions or the working or even the order pipeline and the execution capability. Hence, probably it is the fatigue that is seen in the sell off by the hardcore investors. Whenever we see a recovery, they will all bounce back. However, but on a day to day basis or on an intraday basis, they all cause a lot of discomfort to those who have been there as pure investors and not as a trader.

On Reliance

On a fundamental basis, I have been taking a call that probably there is no reason for the share to fall below Rs 750. However, the kind of nervousness amongst the hardcore investors has led to them liquidating their portfolio, including Reliance and L&T.

I am unable to take a call whether we it will be an up move that can take back the stock to Rs 750 or it can make it breach to about Rs 675. However, I don't think that on a pure fundamental basis there is any reason for the stock to fall below Rs 750.

On real estate stocks

I don't think that there is any value buying real estate stock. It could just be a halt of the short selling or maybe the delivery based selling because of the kind of corrections. I think this is just a halt and maybe we have seen the delivery based selling happening apart from the shorts getting created, so this could just be short. I don't think that there is any renewed buying interest really coming. In stocks like Indiabulls Real Estate there are no fundamental reasons for the stock to initiate and move. For DLF and HDIL there is diverse real estate portfolio but for Indiabulls Real Estate there is no comfort at all to initiate a buy even at these levels.

On Ashok Leyland and IRB Infra

I will be comfortable going with Ashok Leyland and IRB Infra . IRB is an infrastructure play and we have been continuously seeing the lower bottom getting formed for the stock. Ashok Leyland will not be able to meet the sales target and their too margins will be under pressure. Although the commodity price fall can be help these companies but I still won't be comfortable with these two stocks.

On various stocks

There are umpteen number of picks in the midcap space where on can lookout for. In the agriculture space - Jain Irrigation, Advanta, Monsanto should be kept an eye on. In the fertilizer space probably I will be comfortable with GSFC or Swaraj Engines in the midcap space.

One has to pick and choose where you have the growth visibility, where companies are sitting on cash to the extent of about 10% to 20% of their present market cap, reasonable 4X the EPS of the face value plus reasonable dividend payout.

On Coal India

Coal India is likely to rule in a tight range of about Rs 370-375 to Rs 410-415. It can just be termed as a defensive stock, hence, one should look to exit from the stock or go for profit booking at a level of Rs 408 to Rs 410.