Here are some fundamental trading ideas from SP Tulsian

In an interview to CNBC-TV18, SP Tulsian of sptulsian.com shares his views on specific stocks and sectors.

A: The commentary or the statement which has come from Gautam Adani in respect to their Australian Carmichael project, that has instilled the confidence. If you see the statement having given by Gautam Adani, that shows that they are very much committed with the project and it is a very big project. Probably market was dillydallying whether the project will go through or not because in the last one month or so there was speculation also that probably Adani’s are looking to exit from the project.

However this is really going to be very landmark project for the group and not for the company. So, probably because of that reason the stock is doing well. I will advise that remain invested in the stock at least with one months view. I see more upside from here on the stock price because of this news.

A: All these stocks are seeing more of a trading kind of rise and fall because they are all moving now in a range. Except for JK Tyres where there has been a fresh fundamental news of integration and new acquisition which they have acquired of Kesoram Tyre division.

That is being integrated and it has started making cash profit. So, except for that all the stocks whether you take Ceat or MRF or Apollo Tyres, they are all seem to be moving in a trading range. I don’t think that there is any kind of fresh fundamental news on that.

A: I have never liked this stock. If you see one or the other vertical have not been doing well. Now their 99acres seems to have been improving or the losses have got cut but I don’t think you really need to have these kind of stocks in your portfolio because they are generally seen to be giving low kind of returns. You may have good business model but I don’t think returns are seen having been given to the investors.

A: Looking to the Q4 numbers, I think Tata Motors definitely qualifies a buy because maybe some disappointment on the global sales, this stock has seen correction. In fact if you see, the stock has corrected intraday but I am keeping a positive view and if one wants to take an investment view of maybe couple of months, I think the stock looks a good buy at the current level.

A: If I analyse this GST calculation or GST exercise being carried out on each stock, let us understand that there is anti-profiteering clause in the GST law as well. So, suppose if any company stands to gain from this GST reduction, effective GST rate reduction, I don’t think that they can really retain those kind of profit margins, maybe barring couple of percentage, 1-2 percent here and there. Secondly, when you have been taking a call, I don’t think that people are really taking the octroi into consideration. Even that is also getting subsumed into the GST law. So even that would not be a correct exercise to take a call right now that what will be the gain or what will be the loss.

However, yes, the things are because sentimentally you will need to take this all into consideration and the GST having levied at a lower rate on the garments or maybe on this one below Rs 1,000, all innerwear falls in that category. They are seen positive, the GST rates are seen positive for this sector. However, the kind of competition which has been hotting up in this sector, we have seen four or five players already into the listed space and the kind of competition which we have been seeing amongst the other brands also. I would not be taking at the valuations at which they are ruling, they are seen quite rich.

In fact if you take a call, if you take a call on the Page Industries, if you see the kind of growth the company has posted is probably, I have not made the calculation but it is probably in the lower teens, maybe 10-12 percentage for last two or three years. So, I don’t know whether you can reasonably give the P/E multiple of 35-40 or 45 to all these companies or not merely on the GST relief which is seen to have come for these stocks.