Sell Wockhardt around Rs 1850: SP Tulsian

SP Tulsian, sptulsian.com advises traders to sell Wockhardt around Rs 1850.
  • Language
  • App
  • Subscriptions
  • Specials
  • Sign-In
  • Register
Real-time Stock quotes, portfolio, LIVE TV and more.
GeStepAhead SME Special
moneycontrol.com

Home » News » Stocks Views

Feb 13, 2013, 06.27 PM | Source: CNBC-TV18

Sell Wockhardt around Rs 1850: SP Tulsian

SP Tulsian, sptulsian.com advises traders to sell Wockhardt around Rs 1850.

Like this story, share it with millions of investors on M3

Sell Wockhardt around Rs 1850: SP Tulsian

SP Tulsian, sptulsian.com advises traders to sell Wockhardt around Rs 1850.

Post Your Comments

Share Cancel

SP Tulsian (more)

CEO, sptulsian.com | Capital Expertise: Equity - Fundamental ,IPO

SP Tulsian, sptulsian.com advises traders to sell Wockhardt around Rs 1850.

Tulsian told CNBC-TV18, “Wockhardt having recommended at Rs 300 obviously one feel that the stock has really run so much. Wockhardt results expectation I don’t think that there is any logic of seeing it on a year-on-year (YoY) basis. One has to see it on a quarter-on-quarter (QoQ) basis and you won’t see that kind of increase coming in on that account. But if I need to take a call probably for whole of FY13, I am expecting the earning per share (EPS) to be close to about Rs 155 or so, maybe Rs 2 plus or minus. And if you take in that context share is still ruling at a price-earning (PE) multiple of about 12.”

He further added, “Wockhardt is in the top 5 or 6 pharma companies and if you take the call based on the sales-to-market cap or maybe the earning multiple you definitely see it quite undervalued. I don’t think that the PE multiple of 12 on the historic earning because going ahead even for FY14, I don’t expect the EPS to grow in double digit. Maybe one can expect an EPS of about Rs 165 or so having said that for FY13 it is estimated to be at Rs 154-155. So even if I expect the PE, I can only attribute the PE expansion as the probability happening, which can make the stock price to move up.”

“I don’t think that much increase in the top-line and the bottom-line can be expected. So in that scenario it would be prudent that you keep a range of about maybe Rs 1,700-Rs 1,900, which earlier used to be between Rs 1,550-Rs 1,750 that you sell the share if it moves to Rs 1,850, you will definitely be getting an opportunity to buy them back at Rs 100 lower. So that should be kept in mind. But yes, on a fundamental basis and on the results expectation you cannot take the YoY call on the expected results for Q3.”

Ads by Google

Buy, Hold, Sell ? Hear it first on M3
Sell Wockhardt around Rs 1850: SP Tulsian

See all

Get started using your favorite social network

or

Login using moneycontrol ID

Username
Password

Need help logging in? Reset password.

Don´t have an account? Sign Up

Get started using your favorite social network

or

Simply sign up using this short form

* mandatory

UserName*

Username should be atleast 4 character

Password*

Password should be 8 or more characters,
atleast 1 number, 1 symbol & 1 upper case letter

Alert

Your Password should contain
  • 8 or more characters
  • At least 1 number
  • At least 1 symbol
  • At least 1 upper case letter
Confirm Password*
Email
Already have an account? Login