Tech Mahindra may slip to Rs 760: SP Tulsian

Tulsian told CNBC-TV18, “The concern remains on Tech Mahindra because if you really see the British Telecom has reduced their stake to about 15%. If you recall 18 months back they had 30% stake which got reduced to 23% and now that has come down to about 50%. So obviously if the two tranches if I presume that 15% will get sold in two tranches in the near term, may be in couple of months or so, you can expect that the share can fall to about Rs 760 or so.”

He further added, “ Jaypee Infra , I don’t think that it will have too much bearing or reflection on the JP Infra even if the Rs 1100 crore road project is withdrawn, which is the Agra ring road because I don’t think that that is too material and if you really see the land parcels which they have been holding at 5 locations that will really be the key factor that how fast they can really monetise the land parcels because the development has only started on the first tranche of the land of 500 hectare or 1240 acres of land where the development work has been going on and we are seeing every year the PAT of close to about Rs 1200-1400 crore getting added to the bottom-line of the company. So, I am keeping my positive stance on that. The revenue from the expressway is not too material for this financial year because maybe the things will pick up. It will take about maybe 3 months or so to see that how the things really pans out on the traffic, whether we see 60,000 vehicles per day or we see 100,000 vehicles per day and ultimately the revenue indications will all be felt once we have the first one quarter results from their operations or maybe the toll operations. So, I am still keeping my positive stance on the stock. Maybe that whatever corrections had to happen has happened.”

“Overall, there has been negative perception building up on the JP Group stocks including JP Associates. So, this maybe partly because of that, but I presume that those who have a time horizon of maybe about 6 months or so JP Infra on a standalone-basis looks a very good stock at this price. One can expect a price of Rs 50 to cross in the next 3-4 months or so.”