Here are SP Tulsian's trading picks

In an interview to CNBC-TV18's Latha Venkatesh, Anuj Singhal, and Sonia Shenoy, SP Tulsian of sptulsian.com shared his readings and outlook on market and specific stocks.Below is the verbatim transcript of SP Tulsian’s interview to Latha Venkatesh, Anuj Singhal, and Sonia Shenoy on CNBC-TV18.Latha: First up, Bharat Financial, you are happy with the numbers?A: More than happy with the numbers because I don’t think that there is any kind of disappointment seen. Actually all along I have been saying that we are all taking a call on the results with very poor expectations and in the background of the demonetisation where the unanimous view has been that a lot of carnage or a lot of loss of business will be seen for these NBFCs or microfinance, that is not seen reflected, at least in Bharat Financial. Maybe in case of Ujjivan Financial, the higher provision of Rs 54 crore may be seen as a dampener or same thing with M&M Finance but at least in Bharat Finance I don’t think that any kind of things are seen happening negative for the company in Q3. Latha: Which are the other midcap companies that impressed you? There were a bunch of companies like Gandhi Special Tubes, Tata Sponge, Supreme Petro, any of these that you closely watch and you liked in terms of earnings performance?A: Gandhi Tubes, yes, the company has posted good numbers, but I am not so much impressed with the numbers. You can say that they have posted flat numbers. However, what I really liked is again the Crompton Greaves Consumer Electricals. If you see the discretionary spending or maybe the consumer durable company like Havells India where I was not very happy with the results and all sort of things, Crompton Greaves Consumer Electrical has posted very good numbers. Maybe Syngene and Biocon, both of them have posted good numbers. In Tata Sponge, in fact the things are you can say that they are flat results because if you see the power business, that has really disappointed with the lower EBIT. However, yes, I am happy with the numbers of Bharat Bijlee because if you see on a sequential basis probably you will get disappointed on a year-on-year (YoY) performance but I am taking a call on all these transformer makers on a sequential basis and there you will find traction having taken place in the electrical as well in that -- that is power as well as industrial system business because if you see, on both the segments the company has posted good numbers with good operating profits seen rising to Rs 4.35 crore against loss of Rs 23 lakh. So, these are the few midcap results which have impressed me which have come in maybe post market hours yesterday. Anuj: What are your thoughts on couple of stocks which moved yesterday, TVS Motors post the numbers and CESC where we reported that there could be restructuring with listing of the retail arm? A: Two things, first if I talk on TVS Motors, I have been repeatedly saying that I am quite happy. In fact if you see probably amongst the two wheelers, this has been my most preferred pick when it used to rule at around Rs 275 or maybe couple of quarters back when they have disappointed with the numbers, at that time the share corrected to a level of Rs 275 and since then we have been giving a buy call. Coming specifically on the results, I think the results have been quite decent and in fact the market share that has been the focus of the company for all along to increase their market share which they have succeeded and we are yet to see the launch of the higher power two wheelers that will further see the increasing their market share. Apart from that, even the margin expansion which we have seen yesterday has seen to be quite good. Coming specifically on CESC, as long as they go ahead with the retail arm listing, that is a very positive move. However, this move of retail Spencer listing and monetising the stake there, we have been hearing for last maybe four or five years and nothing has seen happened on that front. However, second news which has been seen yesterday of the distribution business getting hived off and monetising that, honestly if you really ask me, I am not happy with this move because if you see, there has been three reasonably big size companies who are into the generation and transmission and the distribution business also. To start with, Reliance Infra we have seen that they were in generation and distribution, then we have seen the fate of the company, generation business having transferred to Reliance Power distribution business getting monetised. Second company which comes with sizeable capacity is Torrent Power which has been got created by merger of Ahmedabad Electricity and Surat Electricity some six to seven years back. They have the power generation plus they have the distribution in Ahmedabad, Gandhinagar, Surat, Bhiwandi, Agra, all the places. Now, if you come the third company which is into generation as well as in distribution is CESC. They are present in Howrah, and Kolkata on the distribution of front. If you are just hiving off the distribution business, I don’t think that this will really be serving the purpose. If you really see, the debt position is not so grim for the company. They have a debt of about Rs 4,000 crore that too because they have been seen very aggressive in increasing the generation capacity in other states, other than West Bengal. So, what is the necessity and in fact if they go ahead, maybe the stock has reacted positively after this news having aired by the channel yesterday but I am taking this as a big negative and in fact the fate -- tomorrow if Torrent Power also initiates the same move of hiving off the distribution business, I will start taking a neutral to negative view which in fact I have been positive. So, I am not convinced at all of this move but monetising the Spencer asset in the retail arm, is a very positive move and that should happen quickly because that is a pending overdue for last over four to five years. For full interview, watch videos...