Market expert SP Tulsian of sptulsian.com on Thursday said he is bullish on Bharat Petroleum Corporation Limited (BPCL) a state-owned oil firm.
On BPCL’s strategic stake sale, Tulsian said the company has a refining capacity of maybe 22-23 million tonne and investments in the other companies, "All this value translates into a total EV of about Rs 1,25,000 crore. If you take piece-by-piece the individual or maybe the exploration assets, refining, petrol pumps of 15,000 retail outlets, all these things translate into the value of Rs 1,25,000 crore. Definitely the prospective buyer will be keen on acquiring this asset."
Tulsian said, "This weekly expiry is positive view for the next weekly expiry which will be starting on December 20. You may have dull behavior because of the non-participation by the FIIs, but I am not seeing much weakness. In fact, maybe for the last couple of months, we have been saying that for 2019, we are taking 31,000 as Bank Nifty’s support level and 11,700 as the Nifty support level on closing basis."
On Power Grid, he said, “The company is having a debt of about Rs 1 lakh crore and that is really scary. In fact, this kind of debt you rarely see in any PSUs. Generally, all the PSUs are seen to be cash-rich companies or are debt-free except for Power Grid as it has a very high capital investment seen lined up even ahead of the next 3-4 years. If you see the EBITDA margin, you may get impressed with EBITDA margin of 75-80 percent, but major portion of that is going away in payment of ‘D’ and ‘I’ So, I am not too fascinated, and that is the reason in the last two days I have said I will take a call on GAIL rather than Power Grid as both are seen to be AGR victim."Disclaimer: 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.