In an interview to CNBC-TV18, SP Tulsian, sptulsian.com takes a positive call on Suzlon. "If somebody can keep a view of 2-3 years, it can give a 200-300 percent return, but yes, in the near-term for 2-3 months that stock should settle at about Rs 24-25 with very minimal downside risk from hereon," adds Tulsian.
The market on Friday closed with the Sensex gaining 180 points to close at 20104 and the Nifty gaining 55 points to close at 6075 after Maruti numbers surprise the street with higher-than-expected performance and the midcaps excelled.
In an interview to CNBC-TV18, SP Tulsian, sptulsian.com takes a positive call on Suzlon . "If somebody can keep a view of 2-3 years, it can give a 200-300 percent return, but yes, in the near-term for 2-3 months that stock should settle at about Rs 24-25 with very minimal downside risk from hereon," adds Tulsian.
Below is an edited transcript of SP Tulsian's interview on CNBC-TV18
A: I am not too convinced with those research reports. You keep coming out with higher targets or may be lower targets, the downgrade, upgrade and all keep happening. However, in today's market two triggers, that is HDIL and IVRCL , suppose if both the stocks would not have moved up or not have been traded with vengeances, with positive of may be HDIL by about 10 percent and IVRCL by about 5-6 percent, you would have seen gloom prevailing on all midcap stocks as well.
Shorts having been created because there are many aggressive traders who just follow the trend and have gone short on these counters, may be not yesterday but even day before yesterday. Yesterday once they get a huge credit as mark to market, they get further enthused and the shorts have got created. Secondly, if you take a valuation call of Hexaware, Polaris, Sintex and may be SREI Infra , all those stocks have been ruling much below their fundamentals.
For instance, Suzlon, the debt have all been restructured on Monday or Tuesday itself by the banks, but yesterday since the company released an official notice saying that the loans have all been rescheduled with the funded interest with a moratorium of two years, we have seen the stock moving up by 15-18 percent. Today, we are seeing the short covering which has been going up.
Yesterday again, the perception got built that write off the real estate and the infra stocks which is not the case, the problem would have remained with these two stocks that is HDIL and IVRCL, but you cannot just take the same application of the parameters or the basis for all the stocks falling in the same category. So, holding positive view on the real estate and the infrastructure stocks, but for HDIL one has to watch next one weeks move. I will not be too upbeat on creating a long position or becoming an investor in the stock. Given the choice, I will rather look to buy other real estate stocks because they are also ruling at lower levels.
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Be careful while betting on midcaps; like Kotak: Dimensions