Enter Bosch at around Rs 17500: SP Tulsian

SP Tulsian of sptulsian.com told CNBC-TV18, "Bosch and Wabco India have a strong entry barrier. You need to give these two companies the premium but this stock is victim of this high priced stock, too much frenzy. Now you know that MRF is not going to give you the bonus, still analysts will keep coming saying that they have an equity of Rs 4 crore, Rs 1,000 EPS every quarter, you cannot play on those theories. Secondly, all these stocks -- where is the participation by the retail? Even if they jump into, they jump at the high price, they will buy at Rs 21,000, they will exit at Rs 19,000. So they are all victim of overprice.""If you see the Page Industries, - you cannot justify an EPS of 60 times for that stock which is giving you a growth of 30 percent. Similar is the case with Bosch. I strongly agree that the entry barriers. There may be any other auto ancillary stocks also. You cannot give them any P/E multiple in the double digit but Bosch is a good stock, you cannot shift that. Everything is moving from mechanical to electrical, so all their technology will, they also adopt the technology. They have been into existence for so many years," he added."I will say probably Rs 17,500 is a good price where you should enter into but this second negative part with this market is that people -- I keep getting the queries from the people, they set the target of doubling in three months maybe 50 percent in one month. These are the stocks which will give you 12 percent return consistently. Are you satisfied with this?.""You cannot buy HDFC and expect them to be in double digits. I don’t think that further weakness is seen from here. Look for a return of maybe 12 percent, you cannot stretch it beyond 15 percent but that will give you for ages, maybe for one decade that can give you a return of 12-15 percent but are you satisfied with that kind of return -- even the funds have the compulsion because they lose money in to their midcap and smallcap stocks where they make up the money by these kind of extraordinary returns of 40-50 percent," he added.