Can your portfolio be attractive with Crompton, ARSS Infra?

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Can your portfolio be attractive with Crompton, ARSS Infra?

CNBC-TV18's segment 'Your Portfolio', discusses one investors portfolio a day from the readers of moneycontrol.com. SP Tulsian of sptulsian.com discusses the portfolio in-depth and advices him on how he should play those stocks.

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Excerpts from Closing Bell on CNBC-TV18 Watch the full show » ARSS Infra BSE | NSE 31/05/12 Are Mutual Funds betting on ARSS Infra? Other Stocks in this news Crompton Greaves |

CNBC-TV18's segment 'Your Portfolio', discusses one investors portfolio a day from the readers of moneycontrol.com. SP Tulsian of sptulsian.com discusses the portfolio in-depth and advices him on how he should play those stocks.

Investor Samaya Sahoo's portfolio has stocks like ARSS Infra , Berger Paints, CESC and Crompton Greaves . He wants to know if he should hold or sell any of the above stocks.

SP Tulsian's Take:

Post Q1 results, Crompton Greaves' share has really taken a beating and I am not convinced with these kinds of valuations on a pure fundamental basis. If you see the EPS for FY12, it is likely to be double-digit on a consolidated basis. As the company is debt free, I don't think one can really get nervous or depressed if there are negative results for one or two quarters.

My advice is to stay invested, if I take a value of at least Rs 175-180 for the stock which may take a couple of month's time but that is the likely valuation on a pure fundamental basis.

On ARSS Infra, considering their Q1 results, the company has posted an EPS of close to about Rs 25. The third and fourth quarters are usually robust quarters for the company considering the order pipeline of about Rs 5,500 crore plus which is likely to get implemented in the next 30 months.

They have to monetize their subsidiary stake also which will ease the liquidity pressure that we have been seeing. So if you take the FY12 estimated EPS, it is likely to be anywhere between Rs 115-120 with the share ruling at a PE multiple of 2.5. If you are a short-term investor at least look for a price of Rs 345-350 but if the investor is comfortable he can remain invested for a little longer time as well.