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Last Updated : Nov 02, 2015 11:46 AM IST | Source: CNBC-TV18

Here are some top trading ideas from SP Tulsian

Watch the interview of SP Tulsian of with Latha Venkatesh & Sonia Shenoy on CNBC-TV18, in which he shared his readings and outlook on market and specific stocks.

Watch the interview of SP Tulsian of with Latha Venkatesh & Sonia Shenoy on CNBC-TV18, in which he shared his readings and outlook on market and specific stocks.

Below is the verbatim transcript of SP Tulsian's interview with CNBC-TV18

Suzlon Energy

"I like Atul Auto, 3M India and I like JK Lakshmi Cement if I purely go by the operating profit. On Suzlon Energy, not so much on the operating front but if you really see the debt reduction, the liability and the creditors payable, all have got substantially reduced."

"I would advice my clients to buy Suzlon at current level only with a long-term view of at least two years because if you are just looking for small near-term buying I won’t advice that," he said.

"Divis Laboratories and JMC Projects looks good, even I liked the results of Sundaram Finance. There are many bad results but these are few good results as well which we have liked."

Divis Laboratories

"Atul Auto looks good. If you see their monthly performance, they have already reported the sales performance of 4,600 vehicles for the month of October. Apart from that if you see the growth and the kind of capacity additions they are doing, they are operating now at a very high capacity and are adding the capacity as well. They are leaders in Gujarat in the three wheeler segment."

"If you see the operating profit having moved up to Rs 20 crore in this quarter, so that comes to my mind as the best stock which I will suggest," he said.

"In the Divis Laboratories one can look for a target of Rs 1,200 plus. So, that is more for the traders and may be on Atul Auto also one can look for a level of Rs 520-525," he added.

Kesoram Industries

"Kesoram Industries has moved into trade-to-trade category and because of that for last about may be couple of weeks it has been languishing and not seeing any participation. The company has not finalised their March quarter results which is Q4 of FY'15 and first quarter results because they sold their tyre division in Haridwar to JK Tyre and Industries for Rs 2,195 crore. The company has already finalised Q4 numbers and if you go by the debt positions, the main concern has been how they reduce the debt. It is Rs 4,300 crore and this Rs 2,195 to be precise will be received by the company on or before December 31, 2015. So, after that, the net debt in the company will remain at Rs 2,100 crore."

"Kesoram Industries still have 3 lakh tonne per annum plant of tyre at Balasore in Odisha which is at a book value closer to Rs 1,400 crore. I don’t see any reason for the company to continue in the tyre business though that continues to be focus area. If I just knock that off, may be it is a matter of time that they will exit from that division also and then they will be left with the cement division of 7.5 million tonne. If I value that even at USD 120 per tonne, the valuations which is being asked by the ADAG Group, Jaiprakash Associates, they are all asking for USD 150-160 per tonne. So, that gives you a value of closer to about Rs 5,000 crore while the market cap is less than Rs 1,000 crore which is Rs 900 crore," he said.

"It is a BK Birla Group company. We have seen Kumar Mangalam coming as a Vice Chairman in Century Textiles and Industries; it is just a matter of time again, the succession plan will happen and eventually the company will come in the fold of Kumar Mangalam. So, if you go by all these things, the moment the share will be removed from the trade-to-trade category, you will see the stock again zooming up."

"In case of Force Motors, about one month back, it used to have a 5 percent circuit and was languishing at about Rs 2,000-2,200. The moment it has been transferred to a 20 percent circuit, the share moved to Rs 3,800," he added.

"Sometimes these things are not fundamental, you just can't give any sensible reason. When it is removed from trade-to-trade, it will rise by 25 percent and somebody may question the sanity of giving that as a factor for the share to move up. However, that will definitely be happening and I am expecting that to happen in next may be two to three months. May be one expect a price of Rs 120 in next six months but this is the major event because now in the next may be about a month or so we will get to see the results of Q1 and Q2 also."

"Taking all this into consideration, the downside is minimum. May be in three months, look for Rs 100 and in six months look for Rs 120 on the stock," he said.

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First Published on Nov 2, 2015 09:39 am
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