S. P. Tulsian was a participant at CNBC-TV18’s Investor camp. He has recommended 5 stocks of well managed companies. These are Yes Bank, Zee Entertainment, Apollo Hospital, Tata Global and MCX.
Lets look at S. P. Tulsian’s logic for the stock recommendations.
S. P. Tulsian’s rationale for recommending stocks from the banking, financial services, healthcare services, media and the FMCG sector is quite sound. He points out that if the economy is to grow with a normal pace of around 5-5.5 percent then banks and financial services are expected to grow by 2.5 times in terms of the asset balance sheet. Similarly there is demand coming in FMCG and health services. Media will do well because everybody needs entertainment.
Yes Bank is the fourth largest private sector bank. There is confidence with respect to their corporate governance. The bank is likely to see earnings per share (EPS) of Rs 35-36 for FY13. They are consistently posting growth of 18-20 percent in topline.
Zee Entertainment has 32 channels in India, 24 channels globally. It has a top line of Rs 2,500 crore, half of that is coming in from subscription and half from ad revenue.
Apollo Hospital is the leader in the healthcare industry. They have corporatised the concept of healthcare services.
Tata Global is a global leader in tea and coffee. They have presence in US, Canada, Europe, Australia, India.
MCX is the leader in commodity trading with 85 percent market share.
S. P. Tulsian had a valuable bit of advice for the buy-n-hold investors. He suggested that even if one is buying the stocks from a long term perspective, he should book profits at periodic intervals for a 5-6 percent return. His logic was that as the markets were so volatile, the stocks would get corrected whenever there is news flow, quarterly results or any developments on political front or global factors.