Avoid Alok Industries, may slip to Rs 8: SP Tulsian

SP Tulsian of sptulsian.com advised avoiding Alok Industries. He said he would not be surprised to see the share falling to about Rs 8.

Tulsian told CNBC-TV18, "One has to give a pass to Alok Industries.We have seen the history the stock was ruling at Rs 7 maybe about a month back, so obviously the indication shows that just to see the rights getting successful of Rs 500 crore plus the prices have been pulled to about Rs 10 or so and again I am expecting it to fall to about Rs 8."

He further added, "In spite of company posting an EPS of close to Rs 8-9 if share is ruling at a PE multiple of 1 and the kind of liquidity crunch or the concerns on the current assets held by the company, how much of the realisable value they are carrying. It means the fictitious element to the extent of Rs 3,000-4,000 crore is really too scary. And again as usual the debt of Rs 10,000-11,000 crore, so no progress having made for monetization of the real estate which we have been hearing from the management for last one year. So definitely a pass and I will not be surprised to see the share falling to about Rs 8 or so."