Tulsian bets on PSU banks, Jain Irrigation & Tata Motors

Stock-analyst SP Tulsian of sptulsian.comexplains to CNBC-TV18 that he continues to maintain his positive outlook on PSU banks especially PNB, Bank of Baroda and State Bank of India despite the steep fall in prices caused by decline in asset quality. Tulsian adds that he will bet on Jain Irrigation whichis performing well thanks to a turnaround and on Tata Motors which offers a good entry level at Rs 220-222. Below is an edited transcript of the analysis on CNBC-TV18. Q: What do you make of SBI's results? All the PSU-bank results have caused damage to their stock prices? A: The damage has been caused by the fall in asset quality of over Rs 10, 000 crore (gross) and a net of Rs 7,300 crore. There hasbeen no disappointment on expected profitability, but if you take a value-call on the book value with an EPS of about Rs 55 every quarter, the book value of Rs 1,650 as on June 30 will move to about Rs 1,800 crore, on a standalone basis. So, I think somewhere a valuation callwill come