SP Tulsian`s view on Opto Circuit

SP Tulsian, sptulsian.com shares his view on Opto Circuit.

Tulsian told CNBC-TV18, “Opto Circuit for last may be one month to 45 days we have been hearing from the market players that there is not something comforting in the financials of the company. When you see the ICRA withdrawing the rating of their Rs 538 crore loan which they have given and the management having given their explanation that the standalone rating has been obtained from ICRA, may be as a rating agency sometimes this is what I expect as an analyst that sometime the rating agencies also should be little vigilant.”
He further added, “When we know that Opto Circuit has a consolidated operation, they have much of their top-line and bottom-line coming in, in the consolidated books, I don’t understand the fundamental reason or the sanctity of giving the standalone rating on the Rs 538 crore debt which is in fact the whole point of confusion and controversy. The management has given the explanation but whenever we see these kinds of things coming naturally the market is not comfortable and they react negatively. In fact if you see for last may be couple of months the stock has been languishing, going gradually on the lower side. Today we have seen a big reaction coming in the form of correction of about 10% or so.”