SP Tulsian of sptulsian.com is of the view that one can remain invested in Blue Star, Voltas and Hitachi Home with a long term view.
SP Tulsian of sptulsian.com told CNBC-TV18, "Blue Star had the voluntary retirement scheme (VRS) provision and that is why, I am not disputing that there has been shrinkage on the margin as well if you see their cooling business and engineering and both the segment. But I am not so much disappointed with Blue Star because one can understand, one can argue that part of the business has been taken away by the air cooler."
"Hitachi Home & Life Solutions has really been a big disappointment because the kind of valuations it has been ruling at, Rs 1,500 or so, you get to see the operating losses even on the topline. The surprising part that we have been getting is the good index of industrial production (IIP) numbers on the consumer durables as well. I have been taking a positive view on all these, whether you talk about Hitachi or may be Blue Star and Voltas. So, I am definitely disappointed but yes, you cannot say that you should exit from these stocks. May be the valuations will take a hit. If you are a long term investor, then you can remain invested but otherwise, there is no point looking for punt or may be for entering now at these levels unless and until we see the clarity," he said.
"I agree that Blue Star has shown an uptick in the topline of Rs 700 crore plus, but there has been shrinkage in the margin. That is what I say that operating profit has taken a hit, because you get to see the prices getting lower for the steel products. I am not saying even for the engineering, copper and non-ferrous, because the ACs takes the composition of all those things. They definitely have an advantage, so they really compromise on the margin to their market share."
"I am not so much disappointed on Blue Star, at least there as been topline growth, Rs 700 crore plus on the topline. You are quite happy, but you get to see the commensurate margin as well with the topline," he added.
Moneycontrol Ready Reckoner
Now that payment deadlines have been relaxed due to COVID-19, the Moneycontrol Ready Reckoner will help keep your date with insurance premiums, tax-saving investments and EMIs, among others.
First Published on Oct 27, 2015 10:29 am