CEBBCO may settle around Rs 40-45: SP Tulsian

CEBBCO may settle around Rs 40-45, says SP Tulsian, sptulsian.com.

Tulsian told CNBC-TV18, “CEBBCO, there has been any kind of disappointment on the working of the company. They had posted earnings per share (EPS) of Rs 2.50 which was Rs 3 in Q2 and Rs 2 in Q1. The problem is not in respect of the pledged shares by the promoters. In fact if you really see the stock has seen huge run up and in fact that happens out of the promoters category.”
He further added, “The informed circles close to the promoters only indulge into the stock. In fact we see lot of pledge having taken place. If not pledge may be the financing having taken place and if you really see the shareholding pattern also, like one of the companies Sunidhi Capital who is holding close to two percent stake in the company they may not be the beneficial owner and definitely some kind of back to back arrangements have happened with the promoters or may be the informed circle close to the management. However the kind of sell today we have seen about 20 lakh and more on both the exchanges, 22 lakh on NSE and 22 lakh on BSE probably major portion of that will get market for the delivery. As high as 85-90 percent and that should in fact ease the pressure on the margin call because may be the problem must have got flushed out with today because yesterday we did not see much volume happening on both the exchanges in the stock.”
“May be the stock is seem to be nearing its bottom, Rs 10 EPS if you really estimate and if you expect the share to settle at about Rs 40-45, that gives a value. So, this is just the pain of the non-promoter category financing which has happened in my view and that should get eased out may be in next couple of days.”