Tulsian reviews Kingfisher, BPCL, ADAG stocks

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Tulsian reviews Kingfisher, BPCL, ADAG stocks

SP Tulsian, sptulsian.com in an interview to CNBC-TV18 shared his views on Kingfisher, BPCL, ADAG and sugar stocks.

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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

SP Tulsian, sptulsian.com in an interview to CNBC-TV18 shared his views on Kingfisher , BPCL , ADAG and sugar stocks.

Below is the edited transcript of Tulsian's interview with CNBC-TV18. Also watch the accompanying video.

Q: Is that what you have been hearing as well, talk of his joint press conference or is there something else the market has been talking about on the ADAG pack?

A: No, it is only on the news of the joint press conference that is scheduled this evening. That is the reason why we have seen acid reaction coming in all the stocks. It is very essential to take a call, though this joint press conference is not scheduled for this evening, but even if this would have happened are we thinking of reunion of both the groups? I have been maintaining that it is not likely.

Market is sometimes tries to act extremely optimist on this news which can be very dangerous for the traders, because traders now-a-days have been chasing the momentum. They don't go by verification of news flows or fundamentals. So the up moves seen in all six stocks of ADAG has been because of this.

As I have been saying, even if we presume, it is most likely is likely to remain confined only to Rcom because of the sequences seen in case of Rcom, the tenancy of 50,000 towers is going to happen between Rcom and Reliance Industries. Then subsequently acquisition of the company by Reliance Industries can happen. That can be an extreme possibility.

Even if this news of any joint press conference gets revived, don't expect enlarged coverage of all the companies to be made there. Even if somebody keeps overnight positions, it can be very suicidal. This is because the moment you have the outcome of the news it can result into gap down opening or corrections which we see next day. So, one has to be very careful. I will be restricting my positive bias to Rcom and not any other ADAG stocks.

Also read: Multibaggers: Two stocks that have good upside potential

Q: Kingfisher has dominated most of mind space today because of what happened with SBI. Do you see that becoming a single digit stock very soon?

A: Not really. Taking a contrarian view, I don't think that all these news are surprising to the market. This is only confirmation on lapses of time schedule by having made by bank that all these are becoming NPAs. We are gathering information that Vijay Malaya is very serious that he wants to continue with Kingfisher Airlines.

For that, efforts are being made of diluting some of his stakes and he wants close to about USD 1 billion. This is because all kind of temporary resistance or stop gap funding availed from Sahara Group is not going to work.

In an extreme case, if he opts to exit from United Breweries which I have been maintaining for last 15 days to one month, can really be very positive. Honestly, I am not expect Kingfisher to fall below Rs 18. As a brave trader or as a brave investor, I will advice to invest in the stock below Rs 19.

Once there is any kind of positive news, one can again see stock going up by 15-20%. That can be a very good short term investment opportunity or a trading bump, so there is no question of seeing the stock falling to a single digit. I am not expecting the share to fall below Rs 18 from hereon. This is nothing new for the company's financial woes.

Q: For the day BPCL has seen quite a bit of an outperformance. What did you make of that?

A: That maybe partly because of some reduction in global crude prices and something to do with the discovery that the company has made in abroad. The stock has seen good shorts having built up on the counter. So, there is a combination of these factors, but I don't that this rally is comforting, because if one is depending too much on global crude price movement this cannot be taken as sustainable rally.

Q: Sudarshan was saying that some of these sugar stocks might have a good technical move. What about fundamentals? Do you like anything?

A: Not positive on the UP based sugar mills, because the pain is going to be seen after elections in the form of sugarcane arreas. But, I am hold positive view on Tamil Nadu based sugar mills and Renuka . I don't think one should broad base investments in sugar stocks. One can remain confined only to Renuka with a longer term time horizon.

This is because I have been maintaining that I don't think the stock can fall further. I am not talking of a trading range of Rs 2-3 which we had been witnessing because of softness seen in domestic commodity prices. But, Renuka can give good returns if held on with a view of about 12 months from hereon, capable to give a return of 50% in next one year.