Enter Orchid Chemicals on dips, says SP Tulsian

SP Tulsian, sptulsian.com advises traders to buy Orchid Chemicals on dips from long term perspective.

Tulsian told CNBC-TV18, “In Orchid Chemicals one can expect that some value buying maybe emerging. The Q3 numbers have been very disappointing. We all knew that the interest burden is still the culprit of about Rs 70-75 crore every quarter in spite of company having sold their one division about six months back for Rs 850 crore. So, if you still take the market cap of close to about Rs 500 crore for Orchid Chemicals that looks reasonable. However, I don’t think that this is the time where one should enter into.”
He further added, “We have been seeing A2Z Maintenance correcting. So, there could be some kind of punt or maybe the informed circle playing in that stock. Even if you buy the quantity maybe about 5 lakh shares or so you can see the stock quickly moving up. So, I will remain away from A2Z but Orchid Chemical can be looked into only on the dips from a long-term point of view.”