Here are SP Tulsian's top trading ideas

So naturally, I will be chasing the growth and even if you see on the valuation parameter, I think Godrej Consumer seems to be the cheapest. I can give any kind of projections so as to suitably convince my buy call that this stock looks cheapest, that stock looks cheapest. When I have done a calculation and taking a call on the FY19 estimated earnings per share (EPS) considering the growth, I think Godrej Consumer looks the cheapest and I continue to have the same positive view.

And in fact if you see the stock having moved up after the 1:1 bonus, having gone ex-bonus recently, in this last one month even that kind of growth is phenomenal. So there is no point in taking a daily call. Maybe Godrej Consumer has seen having corrected after the Q1 numbers which I have said that more because of the technical factors because just a week prior to that, the stock has moved by more than Rs 120 and we have seen that correcting by maybe Rs 40-60.

So that cannot be called as a correction because of the disappointment seen on Q1 numbers. In fact I am quite happy and satisfied with Q1 numbers and amongst all the FMCG space, my best pick would be Godrej Consumer.

Surabhi: Actually your thoughts on Apollo Tyres because the market is very clearly moving beyond Q1 numbers. And now everybody seems to be excited about the anti-dumping duty because not just Apollo, JK Tyre, Ceat, all these stocks are trying to recover at least from the lows we saw last week. Is there any point in buying any of them?

A: No, I will not be buying any of the stocks. If you recall when the company posted this slightly disappointed numbers for Q4. At that time also the same thing was there. And actually in Q4, in fact if you see the rubber prices have softened for a couple of months and at that time, you had a quite a good hopes that probably the numbers will be seen quite good. Better than Q4. I am not even taking a year-on-year (Y-o-Y) call on these stocks.

So except for momentum play, I honestly do not see that there are any fundamental reason. If you see Ceat operating profit falling by 66 percent on a sequential basis similar with a bottom line, MRF, again falling by maybe 70 percent, I do not think that you can really look to and when the stocks are not correcting from their lifetime high in spite of seeing these results. And even if I presume that even if I take the anti-dumping duty call which is likely, whether that will happen across the board, I have my doubts.

You can only see that happening in case of the truck radial tyre and if that happens, how many and which companies will stand to gain, maybe to the extent of about partly for Ceat, to some extent for MRF and partly for Apollo Tyres. So I will not be taking this call of buying across the board for all the tyre stocks merely on the hopes that some anti-dumping duty will come. So except for the trading momentum or maybe the momentum, I would say that I do not see any fundamental reason to buy this tyre stocks across the board.

Anuj: I wanted to talk about the stock that you had recommended, I think it was two weeks back, Sarda Energy and Minerals. It is locked on Circuit right now. Were the numbers that good and where do you see the stock moving?

A: I tell you the numbers are so robust that you cannot even imagine. I do not think that any experts must have thought of that because take the situation Rs 17 EPS on the standalone numbers and always their consolidated numbers which they disclose only with the finalised, that is Q4 always are seen better.

If I just take the situation on their core business of the steel front, excellent numbers. Come on the standalone debt, just now Nigel has referred about Godawari Power & Ispat, I am not saying that the stock is looking on a turnaround path, but having a debt of Rs 2,500 crore and almost the comparable capacity what Sarda Energy has.

Sarda Energy has presence in power, steel and ferro alloys. And if you really take a situation going forward, one a consolidated basis, they have sub-Rs 1,000 crore debt. And if you really ask me, the two stocks, you are right that we have given a buy call on Sarda Energy four days back on this channel in the morning show and since then, it has risen by about 25-30 percent.

But looking to the numbers, I will not be surprised to see it may be fallacy on my part to just extrapolate the same numbers, but even it can exceed the numbers having posted by Q1 because the kind of run up which we have been seeing in the steel cycle are going to be immensely benefitting and in fact it is very essential that we must choose those steel stocks which are having the captive power, captive coal and captive iron ore.

And similar is the case with Sarda Energy. And going forward, as I am quite positive on the complete value chain amongst the steel plant and more on the long products whether you talk of billets, bloom, ingots or maybe CTD bars used for construction and all that, I think there are huge tremendous potential for the stock going forward after seeing this Q1 numbers.

And I may add here that Prakash Industries which was again a stock recommended by me in the morning show also has risen by about 40 percent in this last one month. But still there also, we hold a positive view with a view of about maybe 9-12 months or so.

Anuj: I wanted you thoughts with what is happening with Indiabulls Real Estate. It is a stock which is perpetually in F&O ban nowadays. But it just keeps moving up. Rs 270 now on the stock.

A: Difficult to really give any convincing or fundamental reason for this, but one thing I can say, when after this Real Estate (Regulation and Development) Act (RERA) registration got over, July 31, and my office having carried out the research of all this RERA sites of all the builders, they found that in the Blu Project, which is coming up at Worli of two National Textiles Corporation (NTC) plots having purchased, that project is showing good amount of flats having sold because now under RERA you can find out how many unsold flats are existing of any project and of any builder.

So, probably that was the research carried out by our office and found that the sales is seen to be quite good or robust in the Blu Project and probably the project will start, you will see the possessions getting handed over, maybe in the next 12 months, over the next 24-30 months. So probably that could only be the reason because that is a very upcoming project and it is a central Mumbai, they are selling the premises at about Rs 45,000 per sq ft on carpet area.

So that can be an expectation that the profits will start getting booked maybe 12 months down the line but otherwise, there is no other reason, because if you really take a call on the central Mumbai and all that, the ticket size of flats above Rs 10 crore or maybe above Rs 6 crore, there are virtually no buyers are seen in that.

And Indiabulls Real Estate is predominantly in that space. If you knock of their Panvel kind of projects where the selling is seen to be quite good, but because of this Blu Project showing good progress in terms of selling, as revealed from the RERA registration site, probably that could be the reason of this upmove continuing.

Anuj: Your thoughts on Hindustan Copper?

A: Two things. Firstly I have a positive view on non-ferrous metals and copper falls in that category. But if you see the financial performance of the company is really very poor. So probably looking to the fundamental reason, you may not be able to take a call.

But going by the government reducing their stake from about 88-89 percent to probably 75 percent, and expectation of the improvement of the working seen to be seen working from here on, I advise that he can remain invested for the next six months because this is the only Indian company which is engaged into the copper from copper ore. Because rest other two companies, Vedanta and Hindustan, they are into TCRC.

That means they do not make from ore route. So probability of earning higher profits accrues to Hindustan copper. Hold for six months and again review at that point of time.

Anuj: Your thoughts on Honeywell Automation?

A: Actually the company is meeting day after tomorrow for consideration of their Q1 numbers. And if you see, Q4 numbers were a little dull. And share is now ruling virtually at its lifetime high or maybe at its 52-week high closer to about Rs 13,000. And FY17 had an EPS of closer to about Rs 200. So if you take that valuation call, probably you will find the stock very expensive, but if he is a long-term investor, these are the portfolio kind of stocks where you can remain invested.

But you probably may not be able to outperform the markets by investing in the other sector and the stocks. So if he is a long-term investor, he should remain invested, content with an annual return of about 15 percent or wait to see the Q1 numbers. If they are poor on the lines of Q4, at that time, he can take call to exit from the stock.