In his latest analysis and commentary, stock market expert SP Tulsian of sptulsian.com shared his outlook on specific stocks.
SP Tulsian is a well-known equity analyst. A fundamental analyst with more than three decades of experience, Tulsian has an acute sense of logic and is respected for his frank and forthright views.
Tulsian in an interview with CNBC-TV18 said they have a positive view on two metal stocks - JSW Steel and SAIL on back of revival in auto space in 2020. JSW Steel is the highest margin maker, while SAIL has been ruling at distress valuations.
However, they have a cautious view on non-ferrous space - Tata Steel and Vedanta except Hindustan Zinc are not on their preferred buying list. With regards to Tata Steel there are no complains with their India operations, especially after acquiring Bhushan Steel but European operations are a big dampener.
Talking about the Bajaj twins that is Bajaj Finance and Bajaj Finserv, he said, 2019 has been an exception year for them. "Bajaj Finance has turned very expensive. In fact, the NBFC sector per se is holding a lot of potential and if liquidity is allowed to come into the sector then probably the star sectors for 2020 could be automobile, cement, NBFC and auto ancillary. So taking that into consideration probably no point in chasing expensive stocks,” he said.
“So purely on valuation parameter, I will not be giving fresh investment advice. Those who are holding it can remain invested in Bajaj Finserv and Bajaj Finance,” added Tulsian.
Sharing his rationale for having a cautious view on Piramal Enterprises he said, “With every move initiated by Ajay Piramal, it is giving a wrong signal because every move indicates that the company is in a deep liquidity crunch. When they sold their stake in Shriram Transport Finance that got established. Now if Mr Piramal is saying that he is looking to divest some of his stake in the pharma business – that further establishes that they are running in a deep difficulty on their NBFC business.”
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First Published: IST