Essar Oil may slip to Rs 40-42, says SP Tulsian of sptulsian.com.
Tulsian told CNBC-T8, "Essar Oil can fall further because if you see the financial position, there has been no clarity; the company is still relying on the review petition which they intend to file on their legal advice given to in the supreme court I don't think that the review petition effect or the response have been very good. Generally the review petition doesn't give any relief."
He further added, "The clarity is not there on the time schedule because the company has been saying that they will sit with the Gujarat government of that Rs 6,700 crore and if you need to pay that kind of money and considering their present situation they have a debt of Rs 22,000 crore, cash of Rs 4,000 crore that too with capex in the pipeline from 14 million to 18 million tonne. So taking all those into account, I am expecting share to fall to anywhere between Rs 40-42 and the Tele scam hearing also lined up on 27th January that will also be negative."
