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Tulsian's call on Tata Motors, Coal India & others

In an interview with CNBC-TV18, SP Tulsian of sptulsian.com, spoke about his reading of various stocks and sectors.

May 26, 2011 / 16:39 IST
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In an interview with CNBC-TV18, SP Tulsian of sptulsian.com, spoke about his reading of various stocks and sectors.

Below is a verbatim transcript of the interview. Also watch the video. Investor query: I have 10 shares of Tata Motors at Rs 1188. I want to know what the future prospect of the stock is. Tulsian: Tata Motors posted good results in third quarter, which has really cheered analysts and the market. There is going to be the volume growth of margins or at least it is going to get maintained. The company is likely to have a volume growth of top-line growth of about 11-12% and correspondingly the PAT also or the bottom-line also will get increased in the same proportion.
If we take this financials, an EPS of Rs 40 plus maybe will get reflected for Q4. If you take this on an annualized basis, probably for FY12, company should be heading for an EPS close to about Rs 145 to Rs 150.
I am not taking state that as multiplied by 4 but even if you take for FY12, it should be about Rs 145-150. If somebody wants to take a fundamental call we have not seen the automobile stocks ruling in a single-digit in the last couple of years. In fact, traditionally, they have been ruling at 11-12 PE multiples.
Maybe one can keep a view of about six months but the investor seems to be more of a short term trader and since the investor has bought 10 share at Rs 1188 he can look to exit somewhere at around Rs 1250.
I don
first published: May 26, 2011 02:56 pm

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