Here are SP Tulsian's top trading ideas

Of course, with the improvement in the asset quality and even if I do not go by the asset quality because Q4 FY17 was one-off and that has got restored back to the original levels where the banks used to report the net non-performing loans (NPA) at about 35-40 basis points. So all these things are excellent.

Coming on HDFC, if you really see the standalone numbers, probably you may have a bit of a disappointment that the margins have shrunk or you have not seen the kind of growth coming in. but I do not think that I am not going by today's upmove in the HDFC because that could be just the expiry management which we have seen in the morning and having taken place and maybe the long liquidations may have taken place, but I am keeping a positive stance on HDFC.

In fact, I have been advising this type of stocks that you can have them in your portfolio for the next one decade and there is no need to look for the quarterly numbers, HDFC Limited or HDFC Bank kind of stocks. So yes, the standalone numbers are seen to be a bit marginally not keeping to the mark which we have seen in case of HDFC Limited, but no disappointment.

Anuj: Bharat Financial Inclusion has moved 5 percent higher. Thoughts on this one?

A: The management reiterating that FY18 will be the, they will maintain the PAT having given for the FY18, probably that is cheering the market. But what I feel, maybe continuing with what Dipan has said about Bharat Financial, it is just a matter of maybe a couple of months when this company will exist and probably we will see some corporate actions. It is difficult to say whether it will remain a standalone company which is unlikely.

So maybe the company management when you have categorically said that things are in exploratory talks with the few bankers and the kind of amount which has been created or raised by RBL Bank who is seen in the race to acquire this company, probably ahead of that even we are seeing the cleaning of the books happening. In fact they have provided a huge amount in Q4 of FY17, provisions of about Rs 300 crore, so a majority of that has got factored in or having provided for, but still amount must have left which has been provided for in this Q1 and that is why you have seen the bottomline in red.

But that has not really disturbed the market because the guidance for FY18 and when the company is giving the guidance, they have the sense of responsibility that they need to have that kind of growth visibility and that is probably cheering the market. But what my point is that probably I do not see that company may, except for the regulatory timeline which gets consumed for merger and all that, it will exist beyond FY18 because it is seen as a takeover candidate.

Anuj: Is this a good time to invest in Advanced Enzyme Technologies for the long term?

A: Looking to the numbers and in fact, I will not call Advanced Enzyme as a pharmaceutical stocks, but still people are taking or maybe loosely including it in the same category and looking to the financial results for FY17, earnings per share of closer to Rs 40 plus and post that, the share has spilt to Rs 2, that means effective earnings per share (EPS) of Rs 8. Though they have gone for many of the acquisitions maybe in Netherlands and all that, but I will be keeping a bit cautious view now because kind of price-earnings ratio (P/E) multiple which we are seeing for the stock, 40-42 times, even if I factor in about 15 percent growth.

So the stock is definitely looking expensive and on top of it, the volatility is seen quite high. You see the sudden upmove by about Rs 20-25 and then it swiftly gets corrected again also. So I do not think this is a stock meant for the retail investors where you have this kind of volatility couple of with such an expensive valuation. So I will not advise going for a fresh buying in the stock.

Surabhi: The last quarter numbers, there were some issues there, margins not as impressive but what do you think of PVR?

A: Yesterday, both the exhibitors have posted the numbers, that is PVR and INOX Leisure and if you see, INOX numbers were much better. OVR in fact, we have seen the lease rental and the exhibition cost, both seen rising and the kind of flop movies which we have been seeing have not been able to really help the company.

But, in spite of PVR has always been expensive on a fundamental basis but if you really take a call, this investor seems to be in a small loss of about Rs 40-50, but you swiftly see the price again moving back to Rs 1,450 level also considering the result of Q1 which we have seen yesterday, I am not advising a buy at all, even on the valuation basis, I am not giving buying advice in the stock. But since he has already bought I will advise him to at least wait to see his cost which he should be able to see in the next couple of weeks and at the cost or maybe marginal Rs 12-20 with a higher profit, he can exit in the next couple of weeks.

Anuj: What is your sense? Do you think it is purely expiry related, the kind of intraday pressure that we are seeing in some of these big names?

A: I do not think that except for expiry, these things are there, because if you take a call on two stocks, ITC and ICICI Bank, both are due for results. And you cannot say in expectation of the bad results, both the stocks have corrected after 3 o'clock and prior to that, they were all ruling firm. The firm rise in the ICICI Bank has shown a rise of almost about Rs 12-14 in these last couple of days. So this has to do purely with the expiry management. In fact people have gone long in the morning, or maybe yesterday after the 10,000, the psychological mark having breached 10,000.

So even apart from the short-covering people have gone long thinking that yes, it is a time to celebrate and one can easily make a box of about 100, so I do not think that except for expiry management and you cannot take the markets at such a high level of Bank Nifty at 25,000 and Nifty at 10,100 when you have a five week august series approaching because generally, when you see the five week series coming in, you always see these type of things coming in where the new series opens on a low note. So, except for the expiry management, I do not see any reason that why this correction of about 50-70 points have been seen in this last 15-20 minutes on Nifty.

Anuj: I wanted your thoughts on how to approach a stock like Jaiprakash Associates now after the near 260 percent rally this year.

A: Now, I do not think that anything has remained in the stock of all the Jaypee Groups whether you talk of Jaypee Infratech, JP Associates and Jaiprakash Power Ventures for the near-term that is I am referring near term is anything between one and six months. If you want to take a call, yes all are having potential. In fact in Jaypee Infra, I have been saying which we have recommended Jaypee Infra and JP Associates and having risen by more than 100 percent in this last three months that yes, the value seems to be because still that company has not been touched by the lenders.

And in fact, whatever has happened, the settlements or the restructuring or the monetisation that has only happened in JP Associates. Once we see that in Jaypee Infra, which owns 165 km Yamuna Expressway along with huge land parcels of about 1,200 acres at Aligarh, about 1,200 acres at Agra which has not been explored and about three land parcels of about 1,200 acres, probably that can give you, but again you need to have a longer term view, not even three months, not even six months. Now all these stocks are meant for a view of about one year. I will exclude JP Power for making investments, but JP Associates and Jaypee infra can still be considered only with a view of about 6-12 months as an investor.