By G. Chokkalingam ( Founder, Equinomics Research & Advisory)
I hold 500 shares of Lakshmi Machine Works at Rs 3,700 and 20,000 of Minda Industries at Rs 175. Should I hold them? —SANDIP PURI
LMW is part of good management, but since FY2016, it couldnt post significant growth in profits or revenues. Stock also trades at rich valuation. Hence, sell it whenever it rises 5 per cent to 10 per cent. Minda Industries also trades at stretched valuations of over 27 PE on FY2019 expected earnings. So, start selling it in phases in the next six months, if the stock rises significantly.
I have 900 shares of Sanwaria Consumer with average price of Rs 18, Should I hold or sellRs —SANTOSH K
Hold it with a target price of around Rs 14, which is a fair valuation for this company.
I bought 600 shares of Edelweiss at Rs 280 and 450 of HDFC Life at Rs 505. What should I do? —DR P MAJUMDAR
Edelwise trades at a fair valuation of 2.6 times its consolidated book value of FY2018. You may hold it with a target price of around Rs 220 in the short term. Valuation of HDFC Life is stretched at around 3.8 times embedded value for FY2020. Still you may hold it for long term considering its growth potential and management background.
I hold 1,100 shares of BEL at average price of Rs 107, 100 of Amara Raja Batteries at Rs 860 and 300 of Sintex Industries at Rs 30. What should I do? —A K INGALE
Hold both BEL and Amara Raja Batteries till you recover your cost prices. BEL has been beaten down more than what it deserves due to negative perception on account of margin sacrifice for the government orders. Aamara Raja Batteries, after 19 per cent fall, trades at reasonable valuation of 22 times FY20 expected earnings. Hold Sintex Industries with a target price of around Rs 15 as it is already down enormously and trades at poor single digit PE of around 6 times current years expected earnings.
I hold 1,000 shares of Tata Motors at an average price of Rs 300 and 2,500 of Hathway Cable at Rs 34. What should I do? —KARTHIK
Shift to Maruti or Jay Bahrat Maruti from Tata Motors due to uncertainty for the latter in the UK markets. Sell Hathway Cables whenever there is some tactical upswing. This company, with a debt of around Rs 1,000 crore, is making substantial losses at consolidated level.
I bought 1,000 shares of Vikas Ecotechat at Rs 40.70 in Jan 2018. I am a long-term investor. Should I hold itRs —HITENDRA BADRAKIYA
Despite over 7-fold jump in its net profits in the past 4 years, the company hasnt increased the dividend beyond five paisa per share. This results in the lack of confidence in the stocks. Hence, you may exit Vikas Ecotech if it moves close to Rs 20.
I hold 275 shares of Integlobe Aviation at Rs 1,383. Should I continue to hold them and is there any long term target for this stock. —PANKAJ TORASKAR
Airline business growth prospects remain robust, but its financial performance depends solely on crude oil prices. If oil price falls over 20 per cent, then this stock price can go significantly beyond your cost price. So, please hold it for long term while remaining alert on oil prices.
I have 8,000 shares of Unitech at Rs 4.30 and 1,800 of Suzlon at Rs 8.20. What Should I Do? —RAVITHEJA SIRIVELA
Both companies are making losses and sitting on huge debts. So, not worth holding them. Sell these penny stocks whenever there is tactical upswing in them.
I hold 28 shares of ICICI Securities which was allotted at price of Rs 520 per share. What is the future of this shareRs —SUBHANSHU TEWARI
You may hold it for a very long term to recover your cost as in the short-term, ICICI Securities would face a lot of headwinds due to fall in the stock market and shrinking margins for the online brokers and distributors of financial products.
I hold 100 shares of Avanti Feeds at Rs 475 per share and 1,000 of JPAssociate at Rs 13.50. Shall I hold it or sell it? —C RAMESH
Hold Avanti with a target price of around Rs 450, which is a fair value for the stock. Having lost nearly 50 per cent of your capital, please wait for any tactical upswing in Jaiprakash Associates to exit the stock.
I have 300 shares of GVK Power at Rs 16 and 300 of Indo Solar at Rs 9. Please advise. —GAURAV HAJELA
Hold GVK Power till it recovers to Rs 10, as the value of its airport and road assets could be around 40 per cent more than its current enterprise value. Sell Indo Solar as the debt is more than annual revenues and latest quarterly net loss is three times revenue – since solar power tariff has crashed, it is very difficult for this photovoltaic cell and solar panel manufacturer to turnaround the operations.
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