Hold United Spirits, KFA: Tulsian

SP Tulsian of sptulsian.com, says that investors should remain invested in United Spirits, Mangalore Chemicals and Fertilisers and Kingfisher Airlines. Diageo deal which is likely to happen in next 15 days, and if the deal happens then all these three stocks will rise at least 25% from the current level.

Below is the edited transcript of his interview to CNBC-TV18. Q: How would you approach Tata Global Beverages after the news?
A: The company will benefit the most with the opening of the first Starbucks store because of the arrangement that Tata Coffee had with Starbucks and Tata Coffee being the subsidiary of Tata Global. So, I have a positive stance on both the stocks because of the valuation and re-rating which can happen in the stock.  Q: Which is your top pick in the media sector?
A: Zee Entertainment, Sun TV and TV18. I have a positive stance on all broadcasters. In distribution space, I am positive on Dish TV, Hathway Cable and Den Network. Q: Is it correct time to book profit on the United Breweries Group stocks like Kingfisher Airlines and United Spirits or will the uptrend continue?
A: I will advice investors to remain invested in United Spirits, Mangalore Chemicals and Fertilisers and Kingfisher Airlines. Diageo deal which is likely to happen in next 15 days, if it happens then all the three stocks will rise at least 25% from the current level. Q: What is your view on Dalmia Bharat acquiring Adhunik Cement for Rs 560 crore? What it means in terms of valuations and consolidation as well for the entire sector?
A: Dalmia Bharat Enterprise Ltd is a holding company which holds 85 percent in Dalmia Bharat Cement which is an unlisted space which has acquired Adhunik Cement. Dalmia Bharat Cement, a subsidiary of Dalmia Bharat Enterprise is holding 45 percent stake in OCL India. Dalmia Bharat Enterprise which is a listed entity has close a capacity of close to 10 million tonne and I have appositive stance on all the cement companies which has a capacity of close to about 10 million tonne.
As a thumb rule, one can expect that those companies should be able to post a PAT of close to about Rs 250-260 crore to about Rs 300 crore. Dalmia Bharat Enterprise Ltd which is a holding company and which is a listed space can post an EPS of close to Rs 40 plus for FY13. The stock looks quite interesting even now. The stock can move above Rs 200 in next six months. Q: What is your thought on the processes that are being fast tracked in the infrastructure space and how many projects can come on board and eventually help many of these infrastructure stocks?
A: I think quite positive and this has been the need of the hour, the difficulties which have been faced by National Investment Board will be giving fillip to all the projects. I am keeping my little apprehension on the airport projects except that, all will stand to gain. One can eye this space and mainly power generation because power generations or the power sectors look be the double beneficiary because of the Discom restructuring and formation of the National Investment Board. One can keep an eye onLanco Infra, IVRCL, Nagarjuna Construction Company, they will all be seen to be the big beneficiary of this National Investment Board move. Q: Would you find any trade in Tulip Telecom, that one has seen recovery after god knows how long, a bit of an up move today?
A: There is no point in taking a call, the stock will hit the upper circuit maybe in next four or five days because this has been hitting the lower circuit and this has been a typical character of these types of stocks. It is better to avoid this stock. Q: What is your call on OnMobile Global now?
A: I have been keeping my positive stance on the stock. This stock has been under accumulation for last one month. Prior to that there were financial irregularities and some allegation on promoter coming in but since then we have been seeing the buying coming in into the stock from Rs 35 onwards and it has been going into the strong hands like the institutional investors. The stock may touch Rs 6065 in next 2-3 months.