Enter Amara Raja around Rs 245-250: SP Tulsian

SP Tulsian, sptulsian.com advice traders to enter in Amara Raja around Rs 245-250.

Tulsian told CNBC-TV18, “Amara Raja, Q1 numbers were very good and since then the stock has been moving up and if you see the recent split of the stock from face value of Rs 2-1 even if I take an EPS of close to about Rs 20 on a reduced face value of Rs 1, because till now the company has posted an EPS of close to about Rs 9 for H1 and even if I take an EPS of Rs 20 the share is ruling close to about 13-13.5 PE multiple, honestly I will be little cautious.”
He further added, “When you recalled when the Q1 numbers were announced we see the same kind of frenzy happening into the stock then thereafter the stock saw a correction of about 8-10 percent post that. So maybe the things can make the stock to move to about Rs 275-276, but then thereafter it can slip back to about Rs 245-250 which can make a good entry point, so that will be the strategy on the Amara Raja Batteries. Coming specifically on the results the sugar stocks, I am not saying that they have a huge presence in the market, but if you really see tomorrow we will be having the results of Balarampur Chini where I am expecting the positive surprises to come in. Yesterday we have seen the results of Rajshree Sugar which has really posted very good numbers. So I am keeping my positive stance on the sugar stocks and that can be a good idea, but again cautious stance on the bank stocks.”
“Three results which we have seen today in spite of the poor numbers having posted by the Canara Bank, the worst result amongst all three have been Canara Bank, but still see the market behavior. That shows the trading grip on the stock in spite of the poor numbers. I recall the moment the results were announced immediately the stock has moved, first it has corrected by 2 percent, and then it has straightaway turned into 3-3.5 percent positive. So the technical strength is seen more into the banking stocks rather than the fundamental strength. So I will keep my cautious stance on the banking stocks. These are my overall strategy on the market.”