In an interview to CNBC-TV18's Surabhi Upadhyay and Reema Tendulkar, SP Tulsian shared his outlook and readings on the fundamentals of the market and specific stocks.
Below is the verbatim transcript of the interview.
Surabhi: Could you throw some light on Voltas? We were having this discussion just yesterday whether at current prices you can still buy and I remember you being fairly cautious and ahead of the concall as the ticker is alerting us, we are seeing another 7 percent after 10 percent yesterday.
A: On a fundamental basis I have said that probably beyond Rs 455-460 I do not see any value and considering that the profit booking call was given. But probably because if you see the situation of Voltas, the kind of volatility which you have seen ahead of the numbers, the share has corrected from a higher of Rs 440 to as low as Rs 410.
So we see the trading momentum quite strong on the stock. Probably the kind of upsurge which we have been seeing today, the share is ruling closer to about Rs 460 or maybe Rs 460 plus has to do with the expiry also because people have gone, cut their long positions, in fact many of them have gone short also ahead of the numbers.
So, this expiry may be seen giving the stock a little upside close at about Rs 465-470 beyond that, purely on a fundamental basis, I will not be because generally, if you see the peaking out of the share price with the March quarter numbers because March quarter numbers are always good, follows by June also, but the intensity of June gets reduced getting reflected into the better share price. So, taking purely on a fundamental view, I will hesitate in going for the profit booking at current levels.
Surabhi: Pharmaceuticals for you? Lupin, extremely subdued commentary. We have got a Standard and Poor (S&P) downgrade on Glenmark Pharma coming in as we speak.
A: We have yesterday also discussed on these pharmaceutical themes and I have said that I will be keeping my cautious view on all the large pharmaceutical stocks whether you talk of Glenmark, Sun Pharmaceutical Industries, Dr Reddys Laboratories, Lupin. Actually, in Lupin, probably the management commentary has spoiled the party. Yesterday, the things were not looking as bad after looking at the numbers that probably the things have all got factored in. and in fact, we have been keeping the view on the smaller size pharmaceutical stocks like yesterday or day before I have said that maybe Bliss GVS Pharma or maybe Kopran or in fact one can add Vivimed Labs. On all these three stocks we have given the buy call in the last 2-3 months. So, it is better to look for the smaller ones rather than it is better to remain away from these larger ones, pharmaceutical stocks.
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