Stock expert SP Tulsian bullish on these NBFCs, corporate lenders

However, if one were to see the valuation gap between TCS and Infosys, it’s getting bridged and one can expect 2-3 percent rise from hereon. Infosys stock price should settle at around Rs 800 or so,” he added.

Talking about other specific stocks, he said, “We have been keeping positive bias on L&T Finance Holdings because the book is getting shifted from wholesale and infra to retail. The company has shown good improvement in asset quality in the last couple of quarters and the shift from wholesale to retail will keep happening. Therefore, positive view on L&T Finance as well as M&M Finance.”

He said, “I am not taking any call on mid and smallcap ahead of the budget or purely on the budget because I don’t think the event is the reason for mid and smallcap stocks moving up,” he mentioned.

With regards to sugar sector, Tulsian said, stocks of all the sugar mills and  especially that of the UP based sugar mills seem to have reached upper end of valuation range as of now. According to him, sugar production this year would be around 26 million tonne and India's consumption is also 26 mt, while the opening stock this year is about 14 mt, so unless there is an export of 4-5 mt as desired by the industry, it is unlikely that sugar prices would go up.  He higher sugar prices are basically due to release mechanism, he said.

According to him, a country like India should preserve and never export any of the water crop and rice and sugar are high water consumption stocks but industry is lobbying hard for export sugar of about 4-5 million tonne, so as to bring down the inventory levels to about 9 million tonne,  which is not a correct motive in the national interest, said Tulsian.

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