Tata Steel may hit Rs 150, BHEL won't break Rs 150: Tulsian

SP Tulsian of sptulsian.com told CNBC-TV18, "On Tata Steel I am not able to take a call on the levels if you want to take a longer term call, maybe one year. I will not be surprised to see it at Rs 150. I do not see any hopes for the Corus Steel. We have already seen six years, nothing has happened on that and that has been dragging down the consolidated numbers. You have the flat performance on the standalone and the consolidated is dragged down by the Corus, so you have no hopes on that."

He further added, "As such considering the ferrous steel industry situation across the globe, China is really giving a big competition to this industry because of the huge capacity they have of 600 million tonnes plus, so I am very negative. One can use any kind of rally in Tata Steel, but if you really see it will keep forming the lower bottom. As I said in next one year I will not be surprised to see it Rs 150."
"On BHEL, I will not be taking a negative call. If you really see the policy initiatives having taken by the government and once the cycle starts I do not know whether that will happen by this calendar year end or that will happen after the elections or the new government comes in. Again we are going to see the revival of the power sector and because BHEL is catering to 85 percent of that sector they are the leading equipment suppliers of Transmission Business Group (TBG), so the hopes are continued on that," Tulsian said.
He further said, "On a fundamental basis, the share is ruling maybe at PE multiple of 7-8 times, but we are going to see the three flat quarters for the company, because the total or the major portion of the bottom-line and top-line comes in the last quarter. So we may have some negative continues to remain on BHEL, but I will not see it falling below Rs 150. Those who have a longer term view, maybe about 12-18 months, can look to enter into the stock at a lower level of about Rs 150-155."