Pipavav, PSU banks high on Tulsian's list of bets

Market analyst SP Tulsian of sptulsian.com, explains to CNBC-TV18, in his analysis of the day's stocks, that despite the debilitating effect of the pressure on margin calls on Pipavav, the company remains a good buy as it possess value and assets. With a slew of PSU banks announcing results, Tulsian rates these stocks very high on technical factors.

Below is an edited transcript of the analysis on CNBC-TVB18.
 
Q: The damage continued in the broader markets with a long list led by stocks like Parsvnath, Pipavav, Deccan Chronicle  and Sun TV. How would you approach some of these stocks?
A: The fall in Sun TV and Deccan Chronicle have different reasons. In the case of Sun TV and SpiceJet, the damage has been caused by news of CBI allegations of bribery of Rs 550 crore. For Deccan Chronicle, it was the news of the having pledged shares with Future Capital that did the stock in.
Even if these three stocks are excluded, the pressure on the margin call will remain on the rest of the other stocks unless the promoters come forward. And it all depends on the financial capability of each promoter.
I think the situation may last a little longer and some stocks are already emerging from the storm. It will be possible to take a call only when these stocks normalise. Q: Fundamentally, would you buy Pipavav at Rs 55?
A: The news-flows regarding the infrastructure projects completed and alliances entered into by the company would not have been possible unless it had some value and capability.
The pressure on margin calls is really unfortunate. But the share definitely looks a good buy, but as I explained, it is difficult to take a call on the price-level to make an entry. The company has value and assets.
So, even if investors are brave enough to buy the stock today may be at Rs 55-56, it will be lucrative as the share's price will touch Rs 70-75 in the next couple of months. Q: What is your reaction to MRPL  after the huge loss it posted this time around which has sent the stock down by about 12%?
A: I’m unable to understand why the GRM is negative at USD 4.52 per barrel. I don’t think that there is a loss in inventory because there has been a reduction to the extent of about USD 10 in crude prices during this quarter. Even one excludes the the forex loss of Rs 650 crore, the results are really very bad. Q: The market today was dominated by banks that announced earnings. But what do you make of HCC's results?
A: Again, the results are disappointing. I don’t think that there is any kind of surprise in the offing. The company's focus has shifted from its core business and the subsidiaries are creating problems.
It is a repeat of a poor performance and the situation, in my view, is set to worsen as the hoped-for relief from the restructuring of Rs 3,200-crore debt did not come. Overall, the situation does not look comforting for the stock.