By G ChokkalingamFounder - CIO, Equinomics Research - AdvisoryI had purchased 200 shares of IDFC First Bank at Rs 64, 1,500 shares of HDIL at Rs 4 and 50 Infosys shares at Rs 450.
Please suggest what to do.
-PRANAV MEHTAYou may hold IDFC First Bank with a target price of around your cost price which is about two times its current adjusted book value.
Renewed competition from existing and new banking players, almost peak out of banking penetration in the urban centres and the huge equity capital base of the bank will act as a drag on the stock.
If you can take huge risk involved in penny stocks then you may hold HDIL otherwise, fundamentally, it is a Sell as it is sitting on a debt which is two times its sales and inventories, which are nearly 20 times latest annual sales.
Considering the recent volatility in the markets, you may hold Infosys for another year from the defensive perspective.I hold 30,000 shares of Sanwariya Consumers at Rs 10.25.
I have almost lost 80% of my market cap.
What should I do? -GOKUL KAHaving lost over 80% of your capital you can consider holding it, if you can take risk of losing entire 100% of your investment.
Operating losses of 33% on supposed FMCG revenues and a lack of detailed info on the current assets in terms of inventories and receivables give rise to fear on the stock.I hold Sterlite Technologies at Rs 310, Finolex Cables at Rs 525, Sunteck Realty at Rs 195.
Please help me decide whether to hold or sell these stocks.
-ROBIN VARGHESEYou may hold Sterlite Technologies with a target price of Rs 150 which is a fair valuation of 12 times FY21 expected earnings.
Current price of Finolex Cable is fair (16 times FY21 expected earnings) considering the slowdown in the construction activities and the companys significant dependence on the construction sector.
You may exit if the stock moves up 5% or more.
Considering the economic slowdown and huge pile up of inventories in the real estate sector, I would suggest booking profit in Sunteck Realty if the stock moves beyond Rs 450 which is a fair value of around 16 PE in expected earnings of FY21.I am interested in buying Karur Vysya Bank and Bank of Baroda shares.
Please advise.-VENKATESHBoth banking stocks trade around one-time of adjusted book values and their NPAs are manageable levels in my view.
Hence, you may buy them at current prices for the medium to long term.I have one lakh shares of Uttam Value Steels, and 5,000 shares each of Uttam Galva Steels and Trident.
Please advise.
-RAVI NAIRBoth Uttam Value and Uttam Galva have substantial accumulated losses and huge outstanding debts in relation to their respective sales turnovers, which give rise to pessimism in the stocks and hence, I would suggest sell on both stocks.
As the valuation has contracted in the businesses in which Trident is operating due to the global factors, you may exit the stock if it moves close to Rs 9.I am holding shares of Mahanagar Gas at Rs 850, Hero Motocorp at Rs 2,450, Aditya Birla Capital at Rs 159.
I can hold for 30 months more.
Please advise.
-AMITAs you have mentioned, you may hold another 30 months stocks like Mahanagar Gas and Aditya Birla Capital as both are growth stocks and decently valued around 13 PE and 2.4 times book value respectively on expected earnings of FY21.
However, I believe that the disruptions expected from the electric mobility in the next 2-3 years would cause enormous uncertainty for the existing two-wheeler majors.Please send your queries on Stocks to et.stocks@timesgroup.com; Mutual Funds to et.mfs@timesgroup.com; Tax to et.tax@timesgroup.com; Insurance to et.insurance@timesgroup.com; Realty to et.realty@timesgroup.com.