PG Electroplast may slip to Rs 400, says SP Tulsian of sptulsian.com.
Tulsian told CNBC-TV18, "PG Electroplast, about 65% of the IPO that is 36 lakh shares are held by 26 allottees and definitely they will be making all the efforts to exit on day 1 because the kind of pattern of trading which we have been seeing in the recently listed 10-15 stocks in last 6 months that they try to exit on the first day. If they are unable to do that then probably the operation or the operator play remains continued for a very long time or may be for a week to a month. So definitely on a valuation front I wont say that it deserves a valuation of more than Rs 50 because you can very well compare this company with Value Industries , Videocon group companies having the same business model ruling at a price to book of .15 PE multiple of 4 and so taking all those into consideration this stock doesn't deserve a value of more than Rs 50. But all this kind of game, even the 40000 retail allotees holding about may be 21-22 lakh shares are largely in the control of the so called operator lobby."
He further added, "So there is no point in, because if you have seen probably I won't be surprised to see price falling to about Rs 200 at the time of close or may be give a close of Rs 400, so just unpredictable move on the stock."
