Stay away from Hindustan Copper: SP Tulsian

SP Tulsian of sptulsian.com is of the view that one should stay away from Hindustan Copper.

Tulsian told CNBC-TV18, “Hindustan Copper has corrected much but even if you take a valuation call now I don’t think that divestment can really be made of 9.5% because hardly there is a public float of 20-30 bps. Same thing is happening with MMTC, the valuations of Rs 75000 crore for the entire company Rs 80000 crore is really crazy. Same if you compare Hindustan Copper with Hindustan Zinc because both are of the similar nature in the non ferrous metal space. So I don’t think the valuations are really justified but yes giving reply to the upsurge in all these stocks I don’t see any reason.” He further added, “Infact yesterday there was a news that SEBI is likely to postpone or give some time relaxation for reducing the stake of the promoters which is 75% for private sector and 90% for the public sector and the deadline for private sector is June 2013 and for public sector it is August 2013. So with these kind of news coming in as I said that generally on a brief session, generally when there is not much participation you see these stocks moving up. It goes up by 20-30% then again the rally fizzles out, the so called informed circles they move out from the stock. So my advice is to remain away. One can take a trading call but I don’t think this will really be lasting for a couple of days also.”