Exit Ballarpur Industries at Rs 40: Tulsian

Tulsian told CNBC-TV18, "Let me first mention here that I think that the exuberance, which we are seeing in all the paper stocks is irrational because one cannot correlate the transactions we have seen in case of Andhra Pradesh Paper and giving the same valuation or maybe closure to that or maybe even taking some cues out of that because whenever we see a company getting sold, more especially in the midcap or a smallcap sectors and the kind of valuations they have been enjoying in the secondary market always get very high valuation to the extent of 100-150% more. So it would be incorrect in my view to correlate all the paper share prices to move up in this fashion."

He further added, "Now coming specifically to the Ballarpur Industries or BILT because since this is in the largecap and this is a future or F&O stock, I don’t think that much upside is seen in this stock because whenever in the past also because of their subsidiary, overseas subsidiary going public and all that we have seen share moving to Rs 40 and thereafter it takes a sharp correction and correct to the level of Rs 30-31-32. Now also it is ruling close to about Rs 30. So if somebody gets a price of about Rs 40, one should get out of the stock."