Here are some stock ideas from SP Tulsian

In an interview with Latha Venkatesh and Sonia Shenoy, SP Tulsian of sptulsian.com shared his readings and outlook on the fundamental side of the market, specific stocks and sectors.Below is the transcript of SP Tulsian’s interview with Sonia Shenoy and Latha Venkatesh on CNBC-TV18.Sonia: We were just having that chat with Asian Granito, the company has won a big order and the valuations are also looking reasonable there. Do you track that stock and any advice?A: The anti dumping duty which has been levied on these tiles, that has been effected by the government on March 30. So, it will be very interesting to see the results of all the companies for Q1. Asian Granito also falls in the same category.If you see these stocks, Kajaria Ceramics being the leader ruling at a profit-earnings ratio (P/E) multiple of closer to about 36-37 or maybe 40 times on the historic earnings while the other companies like Somany Ceramics and Asian Granito, they all rule at a P/E multiple of 22-28 times. I agree that going forward things are looking positive, but I will be very keen to watch their Q1 numbers, what kind of margin expansions we see because of this anti-dumping duty. Yes, one of the order which they have received for 12 lakh sq mt is definitely seen positive and that will get added to the performance of the company. But I do not know the timeline by when they will be able to execute.If it spills over in Q2, then probably Q1 and Q2 both will enjoy the benefits of anti dumping as well as of this big order. These are all Rs 1,000-3,000 crore topline companies. I am keeping positive bias, but my positive bias will continue to remain more on the Kajaria Ceramics being the leader followed by Somani Ceramics and then Asian Granito.Latha: I also wanted to ask you about MOIL and NMDC. In both cases, the buyback price has been announced. Any advice for investors? A: All these buybacks which we are seeing now is with a view to enable the government to tender their shares and mop up the funds which is not a bad idea because there is no point in all these companies sitting on a huge cash. If you see their operational performance -- you can include the National Aluminium Company Limited (NALCO) also in the same category -- what will happen once they will divest or they will shed major of their war chest or their treasury which they have been holding, because that will definitely bring down their other income also which is now getting added to the financial performance. So, I am not too excited and this buyback move is more with a view to buy back the shares of the company. Maybe in Coal India, again they are contemplating that all the 6-7 subsidiaries will buy back the shares from Coal India. So, the parent will have that money, because in Coal India also that entire amount of Rs 30,000-40,000 crore is lying with those 6-7 subsidiaries. So these are all exercises being done with a view to buyback the government shares held in these companies which are very high, anywhere between 75-80 percent and that is not a bad move. But one has to understand the performance of the company after this major portion of the cash balance goes away on which they all along have been regularly earning the interest income.Sonia: Some of these cement stocks have come back on the buyer’s radar. Yesterday, we saw UltraTech Cement, Ambuja Cement, ACC all up about 2-3 percent. From that space, what would your top pick be now?A: Maybe from a trading point of view, probably I will go with UltraTech and Ambuja because Ambuja has not participated in this rally so much. Though in the last couple of weeks, it has also started moving up, still it has to catch up with the other cement stocks. UltraTech continues to remain the favourite of the traders. And if you take a call, the kind of upsurge which we have seen in UltraTech, it is very swift. It quickly goes up by about Rs 150-200. So maybe these two stocks looks good from a trader’s point of view in the cement space.Latha: You like any of the telecom stocks? Today there is a bit of green on both Bharti Airtel and Idea Cellular but more so on Bharti because they probably will have to pay a little less of spectrum usage charge and of course for future auctions, they are all going to pay a little less hopefully. So, you like any of these stocks?A: I do not like any of them because as a trader, I do not think you can catch the upside which is very small, maybe a couple of percentage and you get trapped. As an investor, I have been continuously keeping my negative stance on all telecom stocks which I have taken for maybe last over one year or so.Sonia: What are your thoughts on how to approach Bharat Forge now? Finally, there are some orders trickling in and things look like they could be on the mend. At Rs 350, is it a good buy?A: I am keeping a positive bias on the stock because if you just see, probably sometimes, market is only taking or focusing on its auto component business, but they forget that they have, just referring to this recent order of Alstom of Rs 1,500 crore which the company of supercritical turbine and that is in fact breaking the monopoly.If you see, many of such joint ventures have been entered by BGR Energy Systems, JSW Energy and for making with Hitachi, Toshiba, but this is the company which has really been showing a very big breakthrough in terms of this capital goods and obtaining the two 800 megawatt order for supercritical turbine generator by the company for Rs 1,500 crore is a very big win for this joint venture in which Bharat Forge will also be seen a beneficiary.Apart from that, they are focusing in a big way on defence plays. Obviously, defence takes about a couple of years minimum. Maybe three years. So, that will also start trickling into the perception of the stocks. I will not refer it as a profitability.So, in view, yes, the things seems to have bottomed out. I have been keeping a positive bias on the stock and continue to have and in fact, that gets reinforced once you have seen this Rs 1,500 crore order of the joint venture of Bharat Forge with Alstom, they have bagged recently.Latha: The Prime Minister has signed an agreement with United States for six nuclear reactors. We may also get into the nuclear security group (NSG). In advance, can we play some stock? Is Nelco one of them?A: I will not be playing on Nelco. Rather I will go more on the Walchandnagar Industries because Nelco have their hands in too many projects earlier on unattended grounds sensors, the VSAT and the performance has been very lacklustre if you see for maybe last 5-6 years they have been talking of Scorpion venture, Thales joint ventures and all sort of things, but nothing has really happened on the ground. But Walchandnagar seem to have good capability in the nuclear space and I will not be hesitating taking a call because as such if you see, Walchandnagar has been ruling quite low and they can show their strength in that space going forward.