Exit Welspun Corp: Tulsian

SP Tulsian of sptulsian.com is of the view that one should exit Welspun Corp at current level.

Tulsian told CNBC-TV18, “Welspun Corp has suspended the production of plate and coil at their Anjar plant which is in Gujarat. In fact plate and coil in fact the raw material partly used captive consumption by the company for their saw pipe submerged arc welded pipe so that also puts a concern on their core business as well. In fact we have been having lot of corporate governances in this issue in spite of company having made the preferential allotment to an foreign institutional investor (FII) or maybe a private equity at Rs 225 things are not working out in favour of the company and this has been the value destroyer gradually over a period of time. 
He further added, “So, in this situation definitely there is no point in remaining invested in this stock further. I advice to exit now only because there is no point because sometimes you may get to see an upside rally of maybe about Rs 4-5. So, either you wait for Rs 53-54 but I won’t advice to do that and in fact the correct strategy will be either to move into the Tata Global or into Dish TV because two stocks looks to me as the better investment option with a view of about six to eight months also.”