SP Tulsian cautious on Coal India

SP Tulsian of sptulsian.com told CNBC-TV18, "In Coal India one has to wait for the launch, maybe it can come in next one week or so but at what price it settles the previous day or maybe day prior where they set the floor price and I think that taking 5 percent discount, the price should not be Rs 315 or Rs 320. So, maybe around Rs 300 will be the cost to the investors. But if you see the track record or the volatility, or maybe the commodity cycle which we are seeing on the coal, I do not think that you have comfort, in fact Power Finance Corporation (PFC), Rural Electrification Corporation (REC) has been the big destroyer for the retail investors. At that time, if you see nobody had taken a negative call on PFC, REC, kind of fundamentals prevailing at that point of time. But the stock has corrected since then. Same thing has happened with Coal India also.""If you see the secondary price market movement, it has corrected by about maybe about Rs 100 from the top. So, I have been keeping my cautious view. So, even if I have my cost of Rs 300 or sub-300 as a retail investor taking 5 percent discount, I am presuming that that will be allowed. I would not be too comfortable, maybe for a trading punt I can do that, but as a long-term investor I will still be cautious, "he added.