SP Tulsian positive on Voltas

Tulsian told CNBC-TV18, “If you see the performance of this air condition companies they have always post their record results for June quarter. In fact if you recall Hitachi had its highest or the best performance for the June quarter but they have been continuously posting losses thereafter. Last year in the middle of July the share price touched to Rs 210-215.”

He further added, “If I take a call on Hitachi for whole of FY12 they had a EPS close to about Rs 1.50. I don’t think there is any justification for the stock to rule at a PE multiple of Rs 100. But sometimes the news which has been floating in the market for last couple of years that because of the promoter stake of 70% and maybe one institutional investor, Bajaj Allianz life insurance they are holding close to about 4% stake in the company it is seen more as a delisting stock and this is always the frenzy that we see happening which starts from first week of July and fades out or fizzles out by middle of August. I will play not purely on expected better quarterly performance from them. I have been maintaining my positive stance on Voltas post their Q4 results where I gave a fundamental valuation call of Rs 125 over next couple of months and we have seen only one month getting elapse since then and technical target at that time was given at Rs 110 when the share was ruling at Rs 90, So I will continue with my positive stance on Voltas at Rs 125.”

“If I give some credence to the news of expected delisting in Hitachi Home it can move to around Rs 170-Rs 175 but I will be very cautious. The value or the share price fizzles out very quickly but yes, amongst the three the most fundamental looking undervalued is the Blue Star though that stock is showing much of the performance maybe in terms of volume . If you exclude the volume for the day it has always been showing a very thinly trading stock with 8,000 to 10,000 share traded per day but yes, if somebody can keep an horizon of 6 to 12 months I think Blue Star has the potential to move to Rs 250 though the usual thing has happened in case of Blue Star also. Last year June quarter was excellent thereafter they had three bad quarters for the whole of FY12 that has dragged down the share price to such a low level which otherwise use to rule at about Rs 300.”

“I will be positive on Voltas from the fundamental point of view with a further upside of Rs 10 in the next one month. On Blue Star you need to take a call for the next 6 to 8 months to see a price of Rs 250 and on Hitachi this is a high risk high return stock.”