Tulsian negative on Jaiprakash Associates

SP Tulsian, sptulsian.com is negative on Jaiprakash Associates.

Tulsian told CNBC-TV18, "I think again you have the bunch of problems coming in for JP Associates. On Friday we have seen that Himachal Pradesh Government has asked the cement makers to reduce the prices by Rs 25 per bag and JP Associates falls in that category."
He further added, "It has been moved out of Sensex which had effect. Third is the SEBI order which has slapped a penalty of Rs 60 lakh. Apart from that if you see the election of UP which is likely to have a direct bearing on the performance of this stock because the promoters of the company are seen to be very close with the ruling party that is Bahujan Samaj Party of Mayawati and suppose if anything negative happens, they are going to take a hit. So for couple of years, I will say that I am positive inspite of the debt burden of Rs 35,000 crore on the company because of the multi division and all that."
"But generally people, the retail investors are not comfortable in taking such a long call. Even, they sometimes question that why I should not exit now at Rs 52 and look to re-enter at Rs 42-45 if you envisage that kind of price coming in back and they are right in asking that question. So I do see a price of Rs 45 at least coming into the stock price maybe next month or so because even the Q3 results will not be very soothing for the stock to move up."
"So all the events which have happened or which are lined up are not giving any comfort. The stock can fall to Rs 45 so one can look to trade. Exit now at Rs 52, maybe looks to re-enter again at those levels if he feels that the renewed calls are coming back on the stock but as of now, in the next couple of months my view is negative on the stock."