Stock market expert SP Tulsian on Wednesday recommended JK Cement, Saurashtra Cement, Gujarat Sidhee Cement, among other stocks.

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Tulsian told CNBC-TV18 he was recommending JK Cement for the past one year when it was ruling at Rs 700-750 and now it is trading at Rs 1,300. He still expects a huge surge in the stock. The market maven also recommended smaller shares in this space such as Saurashtra Cement and Gujarat Sidhee Cement

“If you want to look at companies having capacity of 50 million tonne or plus then UltraTech Cement and Ramco Cement look good. In mid-cap, JK Cement has capacity of 50 million tonne, JK Lakshmi has a capacity of 50 million tonne."

He added in southern pocket Deccan Cement looks undervalued. So, overall bullish view continues to remain and the investors have about 25-30 stock calls available in this space which have investment potential, going forward, he explained.

SP Tulsian is a well-known equity analyst, a fundamental analyst with more than three decades of experience..

On IGL and MGL, he said: “Indraprastha Gas (IGL) is virtually ruling at 60 percent more valuation of Mahanagar Gas (MGL). If you take EPS for Q2, I am just confining to Q2 EPS for IGL it was sub-7 and for MGL it was Rs 27 plus. So, MGL is enjoying lower PE multiple because of volume growth."

"In fact, they have been focusing largely for the last 4-5 quarters, more on margin expansion and less on volume growth in PNG as well as in LNG.”

“MGL is expecting a CAGR of 5-6 percent volume growth. If that kind of volume growth is shown by MGL then it can move to a level of Rs 1,250-1,300 in next the couple of months,” added Tulsian.

On IndusInd Bank, Tulsian said: “The stock is trading in the range of Rs 1,250-1,550 and I have been observing for last 4-6 quarterly results that it dips after the results and after couple of days it starts moving up.”

“We have initiated a buy call on the stock at Rs 1,400 because it is also seen corrected to lower end of the valuation range and that is giving an advantage. Therefore, we will be buyer in the stock at Rs 1400 or so,” he added.

First Published:Jan 15, 2020 4:14 PM IST