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Your Stocks July 9: 'I have JK Tyre at Rs 180 since five months, what should I do?'

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Your Stocks is a daily show where market experts answer your specific stock related queries.

Your Stocks is a daily show where market experts answer your specific stock related queries.
In July 9 edition of Your Stocks, Gaurang Shah, Geojit Financial Services and Sandeep Wagle, founder and Chief Executive Officer, powermywealth.com, answer your queries on investments in the stock market.
Q: V Prasad holds 800 shares of NBCC at Rs 112 since six months. He is a long-term investor and wants to know whether to hold or sell?
Wagle: I would say that even a bounce back will not take the stock to those levels. I see a bounce back at the range of Rs 80-85. I think that is the level he should exit or in case it doesn’t come, he should keep a stop loss of Rs 60. The stock is extremely weak since the time it has broken Rs 90 levels and I don’t know the reasons, but I see downside.
Shah: Despite of having a strong order book and not to forget it's a government public sector undertaking (PSU), in a year wherein you have multiple state elections and followed by general elections in 2019, I think the reform process might possibly take a back seat, approvals may not come through. So it's going to be a painful period for the next one and a half to two years for NBCC. If you are looking at two years, plus time horizon, then as a disclosure, we have a positive coverage on NBCC and I would advise to hold for a long-term. The investor got about Rs 112, apparently quoting at sub Rs 70 or close to Rs 70, if investable amount is there with the three-year plus time horizon, I would advise to average as well.

Q: Dhananjay Vishwakarma holds 120 shares of Sun Pharmaceutical Industries at Rs 710. He wants to know whether to hold or sell?
Shah: There are two things. One is extend your time horizon by another two years and you will get Rs 712. I think there were plenty of opportunity stocks that are trading Rs 550 closer to Rs 500 for some time. Sun Pharmaceutical Industries in the recent three-six months, there has been positivity in terms of news flow especially with the resolution of Halol plant. So two conditions, one is average at lower level, not at current level, maybe closer to Rs 550 or sub Rs 550 would be a decent level to average and extend the time horizon by two years. We have a hold recommendation on Sun Pharmaceutical Industries.
Wagle: Though, he is out of the money, I would recommend averaging maybe at current levels or maybe on some bit of a correction. I see that the stock has bottomed out and with a stop loss of Rs 470 or so, I would talk of a 12-15 month target of anywhere between Rs 750-780. So I am positive at the current levels.

Q: Ishita Dwivedi holds 63 shares of JK Tyre at Rs 180 since five months. She is a long-term investor and wants to know whether to hold or sell?
Shah: Loss should not be an issue or something to worry about unless and until, you have a long-term time horizon. I think given the numbers that we have seen for the entire auto pack, whether it's two-wheeler, four-wheeler, light commercial vehicle (LCV), tractor or heavy commercial vehicles (HCV), there is a robust sign, plus you have a great new order market and a replacement market for tyre manufacturing companies and original equipment manufacturer companies as far as the auto ancillary segment is concerned. We are positive, but in five months, I don’t think you are going to get anything miracle. If you extend it by 18-24 months, I think there is a lot to be made on JK Tyres as a long-term investment.

Q: Rajvir Bhatnagar holds 500 shares of Sintex Plastics at Rs 27 since two years. He is a long-term investor and wants to know whether to hold or sell?
Wagle: I think, it should be Sintex Industries and if that is so, I would recommend a sell on a bounce in the range of Rs 20-22 and on the downside, Rs 11 can be a stop loss, if that is triggered on the stock, it can even go down to Rs 7-8 levels.

Q: NS Lakshmi holds 200 shares of Dish TV at Rs 92 since two years and five months. She is a long-term investor and wants to know whether to hold or sell?
Wagle: I would recommend cutting off the losses maybe on a bounce. Rs 80-85 would be my range and if it doesn’t come, she has to keep a stop loss of Rs 66. I think the stock has been promising sometime and flattering to deceive. It is not moving up and if it moves up, then it fails. So, I think any bounce back towards Rs 80-85, she must exit.
Shah: Not only the numbers today, but the more important is the August 15 roll out of JioGiga, which may create some amount of difficult earnings time for the relative companies. Our view as a disclosure, let me say, we are positive on Dish TV. There are two problems, one is the time horizon. In case, if she can extend it by two and a half years. But extend it further, if you want to get better returns. Secondly, the merger would possibly throw in a little bit of shaky numbers because always it happens. Whenever you have merged numbers coming in, there are some difficult times. Not to forget, it's one of the largest DTH provider after they takeover Videocon D2H business. Plus the innovation, reinvent and implementation would possibly safeguard the future of survival given that you have a huge competition coming in in the near future. So if you have a three-year plus time horizon, and more importantly from Rs 92 levels, currently the stock is trading at Rs 73-74 levels, maybe some amount of averaging also I would recommend with a three-year plus time horizon.

Q: K Nagarajan holds 300 shares of IDFC Bank at Rs 46. He wants to know whether to hold or sell?
Wagle: I recommend a sell on the bounce maybe in the range of Rs 42-44. The stock has lost momentum. On the downside, the stop loss has to be Rs 35 because if that is broken down, the stock can go below Rs 30 levels as well.

Q: Rajesh Baheti holds 40 shares of GNFC at Rs 312 since six months. He is a long-term investor and wants to know whether to hold or sell?
Wagle: It's looking good. I would recommend a hold with a 10-12 months target of around Rs 500. That should be tested and on the downside, Rs 360 should be the stop loss below which it becomes weak.

Q: Atul Bhaskar holds 1,000 shares of Infosys at Rs 980 since last one year. He is a long-term investor and wants to know whether to hold or sell?
Shah: If you would have asked anybody on the street on Indian information technology (IT) or Indian pharma about a year and a half back, nobody would have possibly recommended you to get invested. Since one and a half years, some of the IT stocks including Infosys and other stocks would have given you return of 30-70 percent and incidentally, there were two stocks that got listed last year, L&T Infotech and L&T Technologies. These gave you a return of about 70-80 percent or maybe more, we don’t have a coverage, I am just making a point over here. Infosys, we remain positive and I think IT companies are something that will have difficult times in terms of some quarters of disappointment in earnings. But in long-term, I think they definitely deliver, we are positive on Infosys on long-term, so hold on to it.
Wagle: I am positive as well. I would recommend a stop loss of Rs 1,180. I don’t think it will break that and in case, it breaks then there will be some weakness. 12-15 months, my target would be anywhere between Rs 1,400 and Rs 1,430. So very clear hold from my side.
Disclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.