Buy Bajaj Electricals on dip: SP Tulsian

Tulsian told CNBC-TV18, “Bajaj Electricals, I will buy it on dips, because if you analyze the whole results, if you knock off the engineering and projects division which contributes about one-third to the top-line which largely caters to the transmission line towers or telecom towers or maybe the rural electrification projects there we have seen the EBIT margin falling from 11% to 5.5%. That has been the case for Q4 as well as for whole of FY12. If you take their call on the lighting division performance they have improved slightly on lighting division.”

He further added, “On Consumer durables the performance has been static. So I the performance can get improved for engineering and project division in FY13 and maybe the stock corrects and settles at around Rs 180 there I think it qualifies a good buy. If you recall the second company which is controlled by Shekhar Bajaj, that’s Hercules Hoists. Even that company has been lying low for quite sometime and we see sporadic or maybe the renewed buying interest coming in at the lower level which take the prices swiftly move up by about 25-30% maybe in very short duration. So maybe even this could fall in the same category at Rs 180. Bajaj Electrical can be given a look.”