SENSEX NIFTY
Feb 07, 2013, 05.38 PM IST | Source: CNBC-TV18

Exit VIP Industries on rally, says SP Tulsian

SP Tulsian of sptulsian.com advises traders to exit VIP Industries on rally.

SP Tulsian of sptulsian.com advises traders to exit VIP Industries on rally.
 
Tulsian told CNBC-TV18, “ VIP Industries , I was never convinced with this kind of valuations. If you recall about 12-18 months back it was very richly valued. If you really go by the management which has a very low market perception and if you go by the business model, 90 percent of its imported contents, they import from China and they have such a big competition threat. To push the product you have to offer discounts to the dealer, discounts on the product to the consumers and you have a lot of competition from the imported stuff.”
 
He further added, “Taking all this into consideration, you cannot really realize on the consistency of the financial performance of this company and I have as I said that I never had the confidence and the faith in the financial performance of this company considering its business model where the weakening rupee can eat away your entire profits. 85-90 percent is the imported content. So, taking all this into consideration I was always very worried or remaining away from the stock, still keeping the negative view only- whenever we see any kind of up move that should be used as an exit opportunity.”

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