Enter Kingfisher Airlines on dips, says SP Tulsian

Tulsian told CNBC-TV18, "If you have heard the statements having issued by the Kingfisher Airlines they have said that this is not a forced sale by the bankers of the non core asset. In fact that is what I have been taking a call, for last maybe three to four months that there is no escape for the UB Group, they have to repay the entire- if you take the liability existing of all the banks put together as on 31st March of about Rs 8000 crore of that maybe to the extent of Rs 5000-5500 crore banks are adequately secured in the form of pledge of shares of United Breweries and United Spirits apart from this non core assets like the Kingfisher house at Santacruz or maybe the villas at Goa and all that."

He further added, "The process has started on which I had been banking on, now the biggest trigger will not be the sale of 30% stake by Vijay Mallya in Mangalore Chemical but the sale of the promoters stake either in United Breweries or in United Spirits because that is the call on which I was playing that that can give him a realization of close to about Rs 7000-8000 crore. If he wants to exit completely and if that happens Kingfisher Airlines will be if you see the Q4 losses of Kingfisher Airlines it was at Rs 1700 crore. One should not get mistaken with a net loss of about Rs 1150 crore because deferred tax has made it reduce to those levels, so this is a cleaning process and once Kingfisher Airlines gets the total debt discharged by the UB Group which I had been saying that he is bound to do that then Kingfisher Airlines can come on a clean slate and then again the resumptions of the operations can get quickly restored and any potential acquirer can acquire the company on a valuation of Rs 3000-4000 crore so still I am maintaining there is nothing to fear, if you are a brave tardier or if you are a brave short term investor one can look to enter on dips maybe at about Rs 10-11-12 and look for a price of Rs 16-18 in next couple of months."