IFCI may settle around Rs 22-23: SP Tulsian

IFCI may settle around Rs 22-23, says SP Tulsian, sptulsian.com.

Tulsian told CNBC-TV18, “Lot of delivery based selling we have been seeing in IFCI. Since you asked about the floor price, on a fundamental basis if you see, the book value which got pruned from Rs 58 to Rs 32 now because of the governments Rs 933 crore equity getting increased and EPS from 8+ to sub 4. Obviously you need to apply 0.7 to price to book and may be a PE multiple of maximum 6. So, that translates a price of Rs 22-23.”
He further added, “This kind of valuations is going to come into play, may be in next one week or so, the kind of exit which we have been witnessing by the large investors. So, I am expecting the price to settle anywhere between Rs 22-23.”
“Orchid Chemicals, post its poor number in Q1- it held on the Rs 100 level and thereafter maybe the stock has moved largely because of the short covering, but maybe at the upper level or at the level of Rs 120 or so we have seen the fresh shorts being getting created, maybe a trading short positions got created. So, maybe the stock can correct to Rs 108 to Rs 110, but I don’t see much weakness beyond that.”