Hold Pantaloon, target of Rs 210, says Tulsian

SP Tulsian of sptulsian.com advised holding Pantaloon Retail. He feels the company initiated debt reduction programme by monetising the assets can make the share to move to about Rs 210.

Tulsian told CNBC-TV18, “Since Pantaloon having sold 22.5 percent stake in its life insurance business, it is expected that it will go ahead and sell the entire 50 percent in due course of time. Apart from that there are talks that they are looking to sell their general insurance business also to L&T Finance in which they are holding 50 percent. In fact company is holding 50 percent stake in both, while 24 percent stake is held by the Binani family in their personal capacity.”
“So, this process of stake sale in both the insurance arms – for life insurance the news is already out for 22.5 percent but others will follow may be in next week to 10 days. With that view in mind I am having positive view because company initiated the debt reduction programme by monetising the assets can make the share to move to about Rs 210. I don’t think that you need to worry for your cost. If you can keep a time horizon of couple of months then look for a target of Rs 210 and hold till then,” Tulsian added.