IVRCL can give a return of 30% in a year: Tulsian

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IVRCL can give a return of 30% in a year: Tulsian

SP Tulsian, sptulsian.com is of the view that IVRCL can give a return of 30% in next one year.

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Excerpts from Closing Bell on CNBC-TV18 Watch the full show » ALSO READ See previous views by SP Tulsian See what other Experts & Brokerages are saying about IVRCL See messages about IVRCL

SP Tulsian, sptulsian.com is of the view that IVRCL can give a return of 30% in next one year.

Tulsian told CNBC-TV18, "I have been maintaining positive view on both Suzlon and IVRCL for last one month. The first positive trigger for IVRCL came because management is merging IVRCL Assets and they also want to monetize realty stocks held in IVRCL. That will help the company in a big way. On the merger, equity is getting extinguished, about 75% stake held by IVRCL in IVRCL Assets. Even in IVRCL, the company is looking to monetize some of the assets and even IVRCL assets like other PPP power projects like Chennai desalination plant. They are also looking to exit from the Hind Dorr-Oliver, which can give them an inflow of about Rs 400-500 crore. That was the reason for taking a positive call on IVRCL. In spite of having seen a huge run-up, I am still maintaining positive view from hereon."

He further added, " Suzlon has been seeing order inflow from India and abroad, mainly from Europe and US. After REpower 100% squeeze out the management has indicated that they have cash of about USD 1.5 billion, this quite comforting on the net debt of about Rs 12,000-12,500 crore. Suzlon, is a USD 5 billion top-line company and the long-term prospects are very good. In fact the company needs to improve its profitability. Probably Q3 may not be able to give much comfort and not much can be expected from Q4. But going forward, FY13 will start giving comfort on the bottom-line. USD 5 billion top-line is quite comforting with Rs 25,000 crore top-line. Taking these into account, I am holding positive view on Suzlon. Apart from technical factors taking a day-to-day call or a week-to-week call, if someone can keep a view of about one year on both these stocks, IVRCL is capable to give a return of 30%, while Suzlon can give a return of 40-45% in next one year."