SP Tulsian said that the correction of 4-7% in consumer stocks should be seen as a buying opportunity.
Speaking about the fall in the midcap index, he said, “I think the excesses always gets corrected and it is very much essential that you take a valuation call. I am not saying that HUL, Dabur, Marico, and Bajaj Finance will get knocked down by the investor from their portfolio, but it is just a matter of valuation. So I think this is the excesses which are getting corrected and this time the trigger has been more in case of the expensive consumer oriented stocks rather than any other.”
On Balkrishna Industries, Tulsian said, “Weak rupee, Balkrishna Industries is seen the largest beneficiary because they are making OTR tyres and 90 percent of their turnover is coming from exports. The capex of Rs 800-900 crore is going to be partly from debt. So I do not think both the reasons are negative. However, stock having moved to level of about Rs 1,400 plus, I do not think these kind of valuations were sustainable.”
Speaking about the cut in LED prices, Tulsian said, “I do not subscribe to the view that the LED prices because the component of LED business in both Havells and Crompton Consumer is seen to be quite minimal and I do not think that that is seen to be the reason for this kind of correction.”
The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.