Upbeat on Sun TV OFS; shun ferrous metals: SP Tulsian

In an interview to CNBC-TV18, SP Tulsian of sptulsian.com shared is readings and outlook on stocks across various sectors like JK Tyre, Sun TV Network, India Cements and ferrous and non ferrous metal stocks.

Below is the verbatim transcript of his interview on CNBC-TV18 Q: Did you have a look at JK Tyre's numbers? What have you made of the tyre companies' performance this quarter around? A: Numbers have been good. But if I compare it with Ceat then probably the numbers are slightly muted. If you make a comparison on a year-on-year (Y-o-Y) basis in the previous quarter, they had other income. So, the numbers can be taken as flat although much better numbers were expected from them. However, if you take the consolidated bottomline, it remains on our buy list. Also read: May series to end above 6100, hold longs: Angel Broking Q: How would you approach some of these metal stocks right now? Tata Steel did quite well with its numbers yesterday, Nalco turned in a good set of results. Is there anything that you would buy from this beaten down space? A: I will remain away from the ferrous metal stocks. If you take a call on Tata Steel, I don’t think that the margin of USD 33 which they have posted for Corus, is really sustainable. Even if you look at the Indian operations then the kind of situations which have been prevailing, there is very poor off take. So I won’t be keeping my positive stance on the ferrous metals like Tata Steel, Steel Authority or India (SAIL), JSW Steel. Jindal Steel & Power.. However, talking about the Nalco numbers – It has posted good numbers from their aluminium segments as well as power segments because alumina has been consistently posting good numbers for last couple of quarters or so. So maybe one can take a look at Nalco and even Hindalco who will be coming out with its numbers today. I am keeping a positive stance on Hindalco, Nalco and Hindustan Zinc but I will not be taking positive view on the ferrous steel stocks. Q: India Cements is down nearly over 20 percent in the last seven days. What would you do with that stock now? A: We will still remain away. Considering the controversies going on and the overhang of the Indian Premier League (IPL), you may see any kind of action happening against the company. Even of you take the franchise value that is also seen moving in doldrums. Taking all this into consideration and as such the overall cement sector not doing well and the fact that  in that space India cements has always remained laggard. Though, I have a positive stance on the cement stocks, I won’t be taking a view on India cements taking in to account their core business as well as the IPL controversies going on, Q: There is an offer for sale from Sun TV tomorrow. Do you think that should go off successfully given the appetite on that stock? A: Yes, I don’t think there should really be any problem because if you really see the appetite or maybe the buying interest seen in Zee Entertainment and even in Sun TV; is likely to evoke good response. The offer for sale is to the extent of about Rs 350 crore, so good homework must have been made. I have been keeping the positive view on these companies and don’t see any problem going forward.