Exit Coal India around Rs 324: SP Tulsian

SP Tulsian of sptulsian.com told CNBC-TV18, “Coal India- good numbers are seen, but the overhang of the Offer For Sale (OFS) is bound to happen, because we may see the stock moving up, maybe the EBITDA of Rs 5,500 crore, close to that, the top-line of maybe sub-Rs 20,000 crore. You do not have much of the I&D component in that. That is not much of the depreciation. So even the bottom-line is going to be quite good.”

He further added, “If you really see the overhang of OFS which we are going to hear, not in this board meeting, because board does not consider the OFS, that is the prerogative of the ministry. That will always remain as a big negative. The kind of coal prices softening in the global market probably will be keeping the pricing power of the company also under check. The only thing which company should aim is to achieve a production of 500 million tonne and plus for FY14 which will be seen positive by the market. So overall I am not too positive on the stock if the better numbers make the stock to move a level of Rs 320-324. That should be an exit point for the investors and maybe the short can be created at a level of Rs 324 in the June series.”