Apr 17, 2013, 06.26 PM | Source: CNBC-TV18
SP Tulsian of sptulsian.com advises to exit from VIP Industries on rally.
SP Tulsian (more)
CEO, sptulsian.com | Capital Expertise: Equity - Fundamental ,IPO
Tulsian told CNBC-TV18, “Two stocks come to my mind VIP Industries and Delta Corp. You see the probably the same set of people, the proprietary investors who have been very active probably are trying to look for the ideas in these stocks that at least by playing in this in a big way they can make about 15-30 percent but both are very risky.”
He further added, “If you really see VIP Industries, it has a imported element in the raw material cost to the extent of 90 percent and rupee having strengthened and dollar having corrected that might be seen as a mild positive but I won’t attribute such a big reason. In fact both the stocks I don’t think have the fundamental value now prevailing. The kind of buying which we have been witnessing today or may be the volume which has happened today in VIP Industries, I don’t see any reason except for the people those who have already been invested in the stock are trying to make it again in a big way by entering into that stock and ramping up the share price and all sort of things. So, these are all technical up move and one has to really exercise caution. As a traders you can take a position, but I don’t think that you should really keep a longer time horizon, look for a couple of days up move and look for a gain of about 6-8 percent in VIP Industries and try to exit there.”