SP Tulsian of sptulsian.com shares his view on Jain Irrigation .
Tulsian told CNBC-TV18, "I don't think that there is any disappointment on Jain Irrigation because the stock is down by about 2-2.5% which is inline with the usual market. But just coming on DVR, since it got listed may be couple of days back and if you see the discount now- there are three DVRs listed, Pantaloon is ruling at a discount of 37-38%. Tata Motor DVR discount is prevailing at 45% and Gujarat NRE Coke has the least discount of 24%."
He further added, "I won't be giving too much credence to the discount in case of Gujarat NRE . So, one can say that the acceptable norm for DVR discount is anywhere between 37-45%. If you take 40% as the discount and Rs 120 as the base price for the share, that gives a fair price of DVR at about Rs 72-73. But since it is frozen today on the lower circuit at about Rs 95-96, I think this has to fall more and this will align may be in couple of days back to about Rs 75 and then we should really take a call because DVRs were issued as 1 for every 20 shares held as bonus shares. So, this is very much in line. Yesterday, day before we did not see that happening on the very first day probably got aware and if you see the volume also is very low for DVR, I don't know the exact volume but its nor more than 4000-5000 shares. Soon a thin volume it has hit the lower circuit. So unless until it reaches to about Rs 75 which in my view is the fair value then it will start trading at those levels."
