Prefer Lupin, Wockhardt: SP Tulsian

SP Tulsian of sptulsian.com told CNBC-TV18, "Maybe people are taking value call but one has to be careful on the US FDA front and we know the kind of value destruction which we have seen happening in those stocks, still you just want to take a call on some of these, probably I will take a call on two stocks from the larger pharma space - Lupin and Wockhardt." "If you do not understand the fundamentals of the industry maybe the commodity probably we may call it as irrational exuberance but I do not agree that. I think that we will see much more in the tea stocks also, in fact maybe couple of days back I had given a buy call on Mcleod Russel (India) and Harrisons Malyalam because if you go by the production, Mcleod Russel is the largest producer and even Harrisons Malyalam is a high beta stocks. However, if stock starts moving up then probably we will see maximum upside coming in Harrisons Malyalam. Therefore, the best is yet to come because we are seeing the new crop coming in, there will be an increase of at least Rs 20 per kg into the price realisation and it is exactly happening on the same lines like sugar stocks, in fact today also many of the sugar stocks are up by about 10-15 percent," he said."I do not think that this is an irrational exuberance for the tea stocks but the only problem with the tea stocks are that they are not credible tea stocks because they are very a few, maybe Mcleod Russel, Jayshree Tea and Industries, Harrisons Malyalam and sometimes people get confused with Tata Global Beverage and people forget that Tata Global is not producing single kg of tea; they are merely the marketers and that is the reason you do not see them gaining from this because if the product prices are rising then the tea producers -- because Tata Global, as a policy, four-five years back exited from the plantation business, they only want to build the brand. So they will not be seeing beneficiary." "So yes, you have to be very calculative and you must be well in respect to taking a call but problem with tea stocks that whenever it corrects maybe after once they peaks out then it becomes very difficult and they swiftly correct also. So I advice that maybe positional call with a longer term view of about three-six months maybe not be taken. If you are getting a gain of 22-25 percent within couple of weeks or within a month, you must exit from these stocks."