Here's why SP Tulsian is not upbeat on Nalco, Sun Pharma

SP Tulsian of sptulsian.com in an interview to CNBC-TV18 shares his rationale for not being positive on Nalco and Sun Pharma Below is the verbatim transcript of SP Tulsian's interview to Anuj Singhal and Sonia Shenoy on CNBC-TV18. Anuj: I wanted your thoughts on one of the stocks of the day today, which is Nalco down about 9 percent, of course, the stock reacting on backward looking numbers, but is it a good point to buy again? A: I won’t be taking a buy call, because there are no forward looking positive indications also seen coming in, because if you see I have narrated this many times if you see the price behaviour of the non-ferrous metal the aluminium is seen the laggard and the kind of participation or the price rise which we have seen for lead, zinc and copper has not seen getting reflected into the aluminium. Maybe, because of the lower consumption and maybe because of the higher production globally and that is affecting the aluminium prices and if you see the situation going forward for Nalco they are only making money in the alumina and not in the aluminium, because if you see their Q2 numbers the same old story continuing losses in spite of the very robust financial structure of the captive power and no debt in the balance sheet and if the companies are losing money in the main product aluminium – I don’t think that you have any kind of respite and the company cannot really continue to make money or offset the losses of aluminium by making money in the alumina. My view at least looking to the Q2 numbers and going forward the indications available won’t be taking a positive call. Anuj: Sun Pharma there is no respite at all even now down 4 percent and this month it is down 8 percent? A: I have been saying this if you recall for the last maybe 6 months that I have never been comfortable on Sun Pharma and I continue to have my same views in the past about a week back some kind of hopes were raised by few experts saying that USFDA issues may get resolved maybe in the next 4-6 months and on that day also I expressed that I am not comfortable, because if you see the kind of valuation and the growth missing, I am not taking this regulatory concerns into the consideration as of now even if you keep a neutral view the kind of growth which the company posting and with no trigger on the growth front coming in honestly I don’t think that you can really take a call when the comparative or maybe on a relative valuations the other pharma stocks are seeing quite cheap.