SP Tulsian negative on Jai Balaji Industries

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SP Tulsian negative on Jai Balaji Industries

SP Tulsian of sptulsian.com is negative on Jai Balaji Industries.

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Excerpts from Closing Bell on CNBC-TV18 Watch the full show » ALSO READ See previous views by SP Tulsian See what other Experts & Brokerages are saying about Jai Balaji Ind See messages about Jai Balaji Ind

SP Tulsian of sptulsian.com is negative on Jai Balaji Industries .

Tulsian told CNBC-TV18, "Jai Balaji Industries has never been a favorite of mine. Two -three FIIs were very bullish and I have seen them recommending this stock saying they have huge coal mines allotted to them but if you see their product mix, I think probably its ruling at about close to 52 week low because the equity is at about Rs 60-70 crore."

He further added, "If you see the integrated operations of the company they are into wire rope making, they are into steel billets making, they have their sponge iron operations. And especially the wire ropes, I am trying to focus on three companies that is Usha Martin, Ramsarup and Jai Balaji. The performance of all three has been horrible for FY12, that I the firs six months, they have lost such a huge amount. Usha Martin lost about Rs 300- 400 crore, Ram Swaroop industries has practically got wiped off, those two are pure wire rope making company but this is an integrated one, they need billet blooms, they have sponge iron, they have captive power but the wire rope has been a big drag. If one looks at the Q2 resutls they have posted net loss of close to Rs 55- 60 crore on a equity base of an equal amount of equity base."

"If you have these kind of performances probably they may close the year FY12 will negative EPS of close to Rs 25-30 and the kind of ambitious expansions having announced by the promoters setting up 1000- 1200 Mega Watt power projects, 5 billion steel plants I don't think those things can really work. It was really strange when things were recommended by 2-3 leading FIIs saying we have a positive view but I have always been keeping negative view and still I have negative view on the stock."