Mar 28, 2011, 04.10 PM | Source: CNBC-TV18
Sterlite Technologies can test Rs 65-66, says SP Tulsian, sptulsian.com.
SP Tulsian (more)
CEO, sptulsian.com | Capital Expertise: Equity - Fundamental ,IPO
Tulsian told CNBC-TV18, "Sterlite Technologies had bad quarters for last two quarters and all that. But since then, in fact the stock has, in my view sometimes I feel that it has taken a beating beyond proportion. I donít think that it deserves a valuation of Rs 50."
He further added. "The second comparable stock with this company is Apar industries . In fact, if you see the movement in the Apar industries, the share has moved in last 15 days by 15-20%. So there was no reason to Sterlite Technologies to languish at around Rs 50 and may be taking cues from the upsides seen in the share price of Apar Industries as well as the value buying at Rs 50, because you have virtually no downside risk in Sterlite Technologies beyond a point. So may be this is coming back and I wonít be surprised to see Sterlite Technologies moving close to about Rs 65-66."
He further added, "I am positive on Aurobindo Pharma but it has moved the moment you see it moving beyond Rs 200, you see the trading profits or may be the traders those who have bought it at lower level, booking the profits. So I donít think that beyond Rs 200, one should really think of entering into the stock. But as a trading stock, I think this is an excellent stock one can keep buying at Rs 190-195 level and look to exit over Rs 200, because it shows a lot of volatility and since it has corrected today, below Rs 190 this is a right opportunity to buy the stock and look for a level of Rs 190-200 in next one week or so."