Market expert SP Tulsian prefers this consumption stock

In his latest analysis and commentary, stock market expert SP Tulsian of sptulsian.com gave his top stock picks in an interview with CNBC-TV18.

SP Tulsian is a well-known equity analyst. A fundamental analyst with more than three decades of experience, Tulsian has an acute sense of logic and is respected for his frank and forthright views.

Talking about Apollo Tyres, he said, “If Warburg Pincus comes in at Rs 171 per share stake and the share is ruling at Rs 150 or close to this level, it is seen positive for the stock because even Q3 numbers were seen good by Apollo Tyres. So overall this is positive news.”

When asked about India Cement, Tulsian said, “I won’t be surprised to see the share correcting in the near term by about 15-20 percent because today it is in the upper circuit, maybe tomorrow it can go up 4-5 percent but thereafter it is risky. In fact, those who are holding it should look to exit. These stocks have run quite a lot and I won’t be surprised to see the correction coming in of about 10 percent in the next week or so.”

On HUL, he said, “If you take valuation call and after GlaxoSmithKline Consumer Healthcare merger this will be an excellent opportunity. The cash sitting on GSK is about Rs 6,000 crore at the end of this financial year, which will also get distributed by HUL amongst the shareholders and the merger will be EPS accretive. Therefore, going by valuation parameter, HUL is available at 51-52 PE multiple of FY21 – that’s the current year and after one month it will be current year earnings.”