INSUBCONTINENT EXCLUSIVE:
By G ChokkalingamFounder - CIO Equinomics Research - AdvisoryI have 50 shares of National Peroxide at a price of Rs 3,200 and another 50 at
Can you please advise on what I shoud do? -PIYUSH SONIYou have entered this stock at the peak of the bull run in the prices of both hydrogen
Now hydrogen peroxide prices have crashed
For you to recover the cost in the stock, hydrogen peroxide prices need to rise around 100% from the current level which is very difficult
in the short to medium terms
Hence, I suggest exiting the stock, if it moves up to around Rs 2,300 as it is now trading at exorbitant valuation.
I have recently
purchased ITDC at Rs 322, KEC at Rs 298, UPL at Rs 588, Hindalco at Rs 216, SBI at Rs 328
Please advise me on how these shares will fare
-MURARIPRASHADIn terms of earnings, ITDC is too costly a stock but enjoys premium valuation partly due to a very small floating stock, in my
Hence, exit if it moves 10% or so beyond your cost price
Hold KEC International with a target price of around Rs 350 which is a fair valuation of around 15 times one-year forward earnings
I suggest exiting UPL if it moves up even 5% to 10% considering a heavy debt position post the acquisition of Arysta LifeScience
You may re-enter if UPL succeeds in gaining the growth momentum post this big global acquisition
Hold Hindalco with a target price of around Rs 240 and SBI with target price of around Rs 370
While possible resolution to the US-China trade war would be a positive development for the metal sector, SBI can gain from speedy
resolution from NCLT cases and also on expected recovery of India’s GDP growth.
I am holding 7,000 shares of 3i Infotech at Rs 7
Please advise.-H N JAJUHold 3i Infotech with a target price of around Rs 3.20 which is a fair value on the basis of PE (10x) and enterprise
value to annual revenue (1.4x)
As it has added a significant amount of fixed assets in the current year, hold it with a higher price target in case the company starts
improving revenues and profits significantly from Q4FY20 onwards.
I have 3000 shares of Nector Life bought at Rs 27.30
Please advise.-ASHOK KPoor single-digit operating margins for the last three years for this lif e sciences company and very low dividend
payout do not give much comfort on the valuation of the stock
Hence, exit the stock if it moves close to Rs 18/ which is a fair value in my view.
I have 1000 shares of Bajaj finance
Shall I buy or hold? -GAJARIAI continue to believe that the current valuation of Bajaj Finance (around eight times price to book value of
FY20) is too costly and hence, suggest booking profits if the stock rises a further 5% or more.
I hold Arvind Remedies at Rs 63.25, Goa
Carbon at Rs 1,021, Graphite India at Rs 706
Need your advice with respect to the next steps — hold or exit? -ALPANAAfter making huge losses, Arvind Remedies got suspended from the
stock market and therefore, nothing can be done to get back your investment from this stock
You may hold Graphite India with a target price of around Rs 360, which is 8x FY21E earnings
Having lost nearly 80% of your capital, you may hold Goa Carbon if you can take further risk and wait for the next possible bull run in
calcined petroleum coke prices to exit the stock
You have entered these two chemical stocks after they ran up 10-12 times in about two years
Please understand the fact that both chemical businesses and stock markets are cyclical
While convergence of these two cycles at the peak create phenomenal wealth for the smart investors (who entered the stocks at the early
stage), on down cycle of convergence, it destroys wealth of the investors, who entered the stocks at the peak prices.
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