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Stock expert SP Tulsian bullish on these NBFCs, corporate lenders

uncategorized | Jan 13, 2020 5:02 PM IST

Stock expert SP Tulsian bullish on these NBFCs, corporate lenders

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We have been keeping positive bias on L&T Finance Holdings because the book is getting shifted from wholesale and infra to retail, said market expert SP Tulsian.

Fundamental market expert SP Tulsian is of the view that corporate lenders like IndusInd Bank, SBI, ICICI Bank and Axis Bank would be reporting good numbers in the third quarter.

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Tomorrow, the results from IndusInd Bank would pave the way for the other corporate lenders. "You have just one concern that is of DHFL provisions, which probably may not be seen existing for IndusInd Bank but maybe for SBI. Overall things seem to be quite positive. All the negatives are seen factored-in specifically for IndusInd Bank. So from hereon, it will be the start of positive call on corporate lenders including IndusInd Bank,” he said.
When asked about Infosys Q3, the stock expert said, “The positive bias got built into the stock because of audit committee saying that there was no substance in the whistleblower allegations and two because of revision in guidance. I agree that the Q3 numbers are good but the revision in the guidance and no concern seen on whistleblower scene seems to be the driver for this."
However, if one were to see the valuation gap between TCS and Infosys, it’s getting bridged and one can expect 2-3 percent rise from hereon. Infosys stock price should settle at around Rs 800 or so,” he added.
Talking about other specific stocks, he said, “We have been keeping positive bias on L&T Finance Holdings because the book is getting shifted from wholesale and infra to retail. The company has shown good improvement in asset quality in the last couple of quarters and the shift from wholesale to retail will keep happening. Therefore, positive view on L&T Finance as well as M&M Finance.”
He said, “I am not taking any call on mid and smallcap ahead of the budget or purely on the budget because I don’t think the event is the reason for mid and smallcap stocks moving up,” he mentioned.
With regards to sugar sector, Tulsian said, stocks of all the sugar mills and  especially that of the UP based sugar mills seem to have reached upper end of valuation range as of now. According to him, sugar production this year would be around 26 million tonne and India's consumption is also 26 mt, while the opening stock this year is about 14 mt, so unless there is an export of 4-5 mt as desired by the industry, it is unlikely that sugar prices would go up.  He higher sugar prices are basically due to release mechanism, he said.
According to him, a country like India should preserve and never export any of the water crop and rice and sugar are high water consumption stocks but industry is lobbying hard for export sugar of about 4-5 million tonne, so as to bring down the inventory levels to about 9 million tonne,  which is not a correct motive in the national interest, said Tulsian.
SP Tulsian is a well-known equity analyst with more than three decades of experience, Tulsian has an acute sense of logic and is respected for his frank and forthright views.
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