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SP Tulsian says not playing on theme of buying hotel stocks ahead of GST rate cut

Updated : September 18, 2019 17:06:40 IST

Market expert SP Tulsian of sptulsian.com on Wednesday said he is not playing on theme of buying hotel stocks ahead Goods and Services Tax (GST) rate cut.

Talking about hotel stocks, Tulsian said, “Except Indian Hotels Company Ltd (IHCL) and Taj GVK Hotels, all other stocks are showing the volatility and the kind of overvaluations. Usually, hotel stocks always perform well when there is a boom in the economy."

While giving his take on ITC, he said, "I don’t know what will be the impact of the e-cigarettes ban. Difficult to say whether that will see the consumption of the cigarette going up and even if that happens socially that is seen to be very bad. Difficult to take a call but purely on a valuation parameter and going by the history of the trading range or maybe the valuation range, this is now ruling at a lower end of the range. You can take the range maybe at Rs 230-275 as the comfortable range so if you just wish to buy, you can definitely go and buy the stock at the current level."

Speaking about Apollo Hospitals, he said, "A company with a 10,000 plus beds in hospital space is a large company. We are keeping positive view at the current level to see a rise of maybe Rs 100 or so in the next couple of months. This stock is showing a swift recovery as well as swift profit booking with trading range seen to be between Rs 1,400-1,575. The best part is that on all fronts things are seen to be improving."

On Bajaj Finance fundraising, he said, "Capital raising by NBFC is always positive and that too at such a hefty valuation. If you are able to raise it, definitely that will improve your all earning parameters. So that will be seen positive. Stock look quite an expensive post-correction but thereafter I have my doubts that share will sustain its up move unless until we see some kind of positive surprises in Q2 so we are keeping the cautious view in spite of the positive move seen ahead by company."

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.
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