Cautious on Bombay Dyeing: SP Tulsian

SP Tulsian of sptulsian.com is maintaining cautious view on Bombay Dyeing.

Tulsian told CNBC-TV18, “It is so difficult to take a call on both the stocks whether you take Essar Oil and Essar Shipping. In fact profitability is never consistent and probably that is the reason we have seen such big variation here also. The second problem with the stocks is that their prices are never sustainable.”
He further added, “We have seen the spurt of 13-14% probably the stock may move to about Rs 33-34 but again will start correcting. I don’t take a call based on these events where one can build up a trading or an investment position into the stock.”
“Bombay Dyeing, whatever information which we are gathering is that there is a little dullness in their sales at their Naigaon property but yes, they have completed one tower. I won’t be able to take a call how much of the flats in the completed tower have been sold by the company and how much balance installments having received by them. In the new projects there has been quite lull, they are not able to make fresh booking so maybe the results may not be as great as we have seen for the March quarter but still the kind of upsurge which we have seen in the stock price today probably indicates that there could be some positive surprise but I am keeping little cautious view on the financial performance on Q1.”