CEBBCO can move to Rs 70, says SP Tulsian

CEBBCO can move to Rs 70 in next couple of months, says SP Tulsian, sptulsian.com.

Tulsian told CNBC-TV18, “I don’t expect CEBBCO to fall below Rs 44-45 and though we have seen it hitting the lower circuit but because of the problem which I see happening in respect to maybe about 1-1.25 crore shares which seem to have been pledged with the financiers which are in the non promoter category large chunk of that seems to have got sold yesterday and today. In fact on Friday we have not been able to see much of the stocks getting sold and coming on the management call obviously the management will say that they have nothing to do but I am not prepared to buy that argument.”
He further added, “Going by the working they have been posting good consistent working with an EPS of close to about Rs 2.50 every quarter. So, they should be able to close with an EPS of about Rs 9.5-10 for FY13 executing the orders for Tata Motors, bus body building and all that so no concerns on the business model as such but this kind of maybe the informed buying we have seen one large investor holding 10 lakh shares acquired at Rs 101 seen exiting from the stock at a Rs 50 because that seems to have been sold by the financiers. So, all this things problems seems to be coming to an end and it is likely that it must have got over today and once that confirmation comes in probably we can see the stock moving back to about Rs 70 or so in the next couple of months.”