The latest analysis and commentary by stock market guru SP Tulsian of sptulsian.com on what is moving the markets today.
Speaking about earning of Motherson Sumi Systems Tulsian said, “Motherson Sumi earnings is disappointment because the working does not seem to be good. Though I am keeping a positive bias on the auto ancillary going ahead because you will see the dramatic turnaround happening. If I focus purely on quarter numbers of Motherson it is disappointing.”
GAIL numbers are cheerful, according to Tulsian. “GAIL numbers have been coupled with one to one bonus also. If you see their all segments — maybe their transmission of the gas or maybe the natural gas marketing I don’t think that you have any kind of disappointment.”
Talking about BHEL, Tulsian said, “With the new government coming in something is going to happen maybe with the share buyback or maybe some kind of stake reduction by the government and all sort of things. This is an excellent opportunity to buy BHEL because numbers are not disappointing. I would call that numbers are seen to be mildly better and improvement in the balance sheet as you have said which I agree with. This is an excellent opportunity to buy at Rs 70 if you have a vision of about 6-12 months on the stock and can expect a return of 25-30 percent from the current levels.”
When asked about his stock bets on midcaps, he said, “Take the case of AIA Engineering, that has just now come out with the numbers maybe half an hour back, that company is catering or manufacturing grinding media which are used by the power and cement industries. It is high consumable for the cement industry. The capacity utilisation across the board have increased from 73 percent to 82-83 percent. The capacity is going to get increased.
"AIA Engineering have posted very good numbers even on a QoQ basis and YoY basis and it is a monopoly business. So grinding media they are the pioneer and this is just one example and this is just one off the stocks — if you really wish to add then GE, T&D India, Cummins and all kind of related stocks so the ample opportunity is seen and advantage is that all these shares are seen ruling quite low maybe at a lower end of their valuation and trading range so lot of comfort is seen and even BHEL can be looked into as it is capable to give you 25-30 percent return.”Disclaimer
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