Exit Vaibhav Gems on rallies: Tulsian

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Exit Vaibhav Gems on rallies: Tulsian

Investment Advisor SP Tulsian is of the view that one can exit Vaibhav Gems on rallies. The company yet to declare their March Quarter results, December Quarter results has been pathetic. The drop in the bottomline was about 90% inspite of a rise in the topline by about 45%.

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Excerpts from Your Stocks on CNBC-TV18 Watch the full show » RELATED NEWS Vaibhav Gems forges ahead ALSO READ See previous views by SP Tulsian See what other Experts & Brokerages are saying about Vaibhav Gems See messages about Vaibhav Gems Vaibhav Gems BSE | NSE 30/05/12 Are Mutual Funds betting on Vaibhav Gems?

Investment Advisor SP Tulsian is of the view that one can exit Vaibhav Gems on rallies.

Tulsian told CNBC-TV18, "Vaibhav Gems are yet to declare their March Quarter results, December Quarter results has been pathetic. The drop in the bottomline was about 90% inspite of a rise in the topline by about 45%. If I take the three quarter results, which are already out FY08 EPS is not likely to exceed Rs 4 against about Rs 9 for FY07, promoters stake of 14%, high equity of 32 crore. If I take the overall call that really does not excite me at all if one sees the gems and jewellery space the leading and the frontline stocks have a P/E multiple of anywhere between 5 to 7 or may be 8 times, while this stock may be having a P/E multiple of close to16-17, the stock has seen the run up of about 30%."

He further added, "The company has given an announcement that probably they are going for restructuring and all that but sometimes even that raises a doubt that this is with a view to help the momentum play maintain. You have all the reasons to get trapped into the stock and you have seen the share touching its previous high also in more than three digit. My advice is that remain away and those who have been holding the stock and if they are getting profit probably they are advised to exit. But if you are at a loss for the short-term you can ride the momentum, the moment you get your cost price, I advice to exit. There is no point in chasing the momentum or remaining invested in the stock."

Disclosure: Analyst has personal holding in Power Grid.