'Hold on to frontline stocks'

During the weekly money chat with Pranav Sanghavi on Tuesday, questions revolved around which stocks to hold on to in a market which is highly unpredictable. Like always, Sanghavi was quick and precise with his answers. Here is the transcript: 

PRANAV SANGHAVI says, Hello everyone, let's begin the chat.

ADF asked, ANONE HOME

PRANAV SANGHAVI answers, Hello ADF.

Zubbu asked, I brought DS Kulkarni 100 @ 426, Indswift lab 200 @ 169, what is the future of these scripts for medium term?

PRANAV SANGHAVI answers, You have bought both these at very high levels. They are nearly half their rate. Can you take in the loss? If you can then book the loss and buy a frontline growth stock.

bina bora asked, What is the scope of Adani Export and Bharat Forge I hold 50 shares each. Should I hold?

PRANAV SANGHAVI answers, You could look at Adani for a buy as they have major expansion plans and have a good balance sheet. Bharat Forge is a commodity stock but you could look at it with a long term view as the demand for steel will continue for atleast another 4 to 5 years.

gg asked, I just bough Tech Mahindra shares. Is it a right choice?

PRANAV SANGHAVI answers, Yes you could hold on. The listing has been satisfactory and also the figures shown in their Prospectus look good. But the true test will be it's results over the next few quarters.

kristoff asked, hi

PRANAV SANGHAVI answers, Hello.

Ganesh asked, I have Navabharath ventures 400 shares, what is the future of this scrip, can i hold or sell it

PRANAV SANGHAVI answers, I am sorry I don't follow that stock, so would not be able to help you. It's quoting around Rs. 115 currently.

balu asked, I sold 109 tech mahindra stock at Rs.547 when should I buy again? I have 25 infosys@Rs.1756 and 10 Siemens at Rs.1023 please advise

PRANAV SANGHAVI answers, You could buy it when it goes below that price. But it's a good hold. Infosys and Siemens both are good quality stocks and strong performers and I would stay invested.

fg asked, I have entered into SIPs of five cos -- ICICI Prudential, Franklin Templeton, HSBC Advantage Fund, HDFC Top 200 Fund and Fidelity Equity. What do you think?

PRANAV SANGHAVI answers, I think its a smart move and you have chosen the funds also well.

Sandeep asked, what is the prospect of Satyam Computers

PRANAV SANGHAVI answers, It looks to grow at around 38% per annum. They have managed to meet their future guidance in the past and I don't see it missing it in the future. Hold.

NRAWAT asked, Sir, I want to know the future prospects of Graphite India & Heritage Foods

PRANAV SANGHAVI answers, Heritage Foods I don't follow, but Graphite India you could hold on. It has good prospects for the future.

sudheer asked, KINDLY let me know the future of CIBA SSpecialities, BILCARE & VISU INT.

PRANAV SANGHAVI answers, Ciba Specialities is a player in the FMCG sector. You could hold on. BIL Care and Visu I don't follow.

Ganesh asked, Hi...have 200 shares of Essar oil for 44, on a short term what will be the target

PRANAV SANGHAVI answers, I wouldn't be able to help you with a target but you could surely hold on.

shivakumar asked, can u please tell me about stock market

PRANAV SANGHAVI answers, You will need to visit the websites of the leading exchanges of India to get a detailed answer. I would need a full session to explain the dynamics of a stock market.

aslam asked, hi pranav, what about uniply industries, this stock has gone up by nearly 100 per cent in a month , what's your say on this

PRANAV SANGHAVI answers, I presume it was hammered quite sharply in the correction. And all the quality midcap stocks are witnessing a sharp rise.

Fahi asked, I have Havells india @ 322 what is the future for long term?

PRANAV SANGHAVI answers, It is about 10% below you acquisition cost but you could hold on. You should see profits.

NRAWAT asked, Sir, What is your view on NDTV and Kirloskar Oil Engines Ltd.

PRANAV SANGHAVI answers, NDTV is a very competitive channel and I think it's gaining viewership and market share steadily. You could hold on. Kirloskar also could be held.

jaikumar asked, Hi - I have some mutual funds investments - in HDFC EQUITY, FRANKLINTEMPLETON FLEXICP AND SBI MAGNUM GLOBAL, ALSO DSPML TIGER - WHAT IS YOUR OPINION ON THIS HOLDING

PRANAV SANGHAVI answers, Os the HDFC a diversifies bluechip fund? Besides that all are good funds with a long term outlook.

Dilbag asked, I have Su-raj Diamond, bought at Rs. 60/-. What should I do? hold/sell

PRANAV SANGHAVI answers, You could sell and switch to a fronline stock in the sector.

karthik asked, i hold stocks of ttk prestige brought at 159. when is the best time to sell these as they r currently trading at 100

PRANAV SANGHAVI answers, There will never be a best time. One can never predict accurately. But you could wait for minimising your loss or a marginal profit before selling and switching to another stock.

aka asked, what about reliance energy. It is not miving. What is the out look. can it test its recent highs of 700.

PRANAV SANGHAVI answers, On a longer term I think REL should cross its previous highs. But in the short term it should consolidate before steadily rising.

Sandeep asked, I have 25 shares of HPCL, is it good to hold ? should I invest more in it ?

PRANAV SANGHAVI answers, Fundamentally HPCL is a very strong stock. But if the Crude Oil prices rise in the future then it could adversely affect HPCL's refining margins as an equivalent price hike in petrol and diesel will not be permitted.

rameshseelam asked, i have bought era construction at rs.267 can i hold it and when to exit

PRANAV SANGHAVI answers, Closely study the company and its forthcoming development plans. If they have genuinely taken on large projects then the company should do well.

Fahi asked, Hi, Is it worth buying SBI for long term @925?

PRANAV SANGHAVI answers, Yes, I am still bullish on SBI. I have been since we started this chat when it was hovering around Rs. 750 levels.

Shivam asked, Dear Mr Sanghavi, my friends keep telling me that I should invest in penny stocks as they could give HUGE returns. Do you think investing in penny stocks is a good idea? And why?

PRANAV SANGHAVI answers, I am completely against the idea of investing in penny stocks. More often that not they are operator driven. And it's always the operator who makes the money and the naive investor who loses.

sam asked, I have bought Ispt at 28 (10000) noss. before conversion (preferntial conversion)Is it recommended to keep?

PRANAV SANGHAVI answers, Ispat is planning on some restructuring. You have to wait and watch how much investment does flow in. It is owned by LN Mittal's brother but LNM has no interest in the company.

msenthil asked, i have bought bajaihind can hold or covered? bought @326.50 100 shares..

PRANAV SANGHAVI answers, First of all it is a Re. 1 face value stock. Secondly it is a frontline sugar stock. It is still hovering at your ac

msenthil asked, i have bought bajaihind can hold or covered? bought @326.50 100 shares..

PRANAV SANGHAVI answers, acquistion cost. If you are bullish on the sugar stock then hold on. If not then switch.

ndeepn asked, Is the runup for BHEL over, or there is more room for appreciation?

PRANAV SANGHAVI answers, I think BHEL could appreciate further over a 6 to 12 months period.

NRAWAT asked, Sir, I am holding 4000 shares of Rama Newsprint. What is your view on that

PRANAV SANGHAVI answers, You could switch to a frontline paper stock like BILT.

Anand asked, Hi Pranav, do you think Mahindra Tech is a wise investment choice?

PRANAV SANGHAVI answers, I have answered a similar query in my earlier replies, please scroll back.

Virendra asked, what are the prospect of Kesoram ? I hol 25 @310 & now it is arround 390. Shall I book the profit ?

PRANAV SANGHAVI answers, Book profit and switch to a frontline cement stock.

diwakar asked, purchased 800 shasun chem @ 94 whether to hold average or buy

PRANAV SANGHAVI answers, You could hold.

wdds asked, what is the prospect for Adani Exports

PRANAV SANGHAVI answers, I have answered a query on the stock in this chat prviously, please scroll back. Thank you.

BOBY asked, I WANT TO KNOW THAT I HAVE 500SHARES OF MERCATOR & 500 SHARES OF G.V.FILMS PLS TELL US THANKS

PRANAV SANGHAVI answers, Mercator you could hold on although shipping is a cyclical business. But I think the frieght rates will hold on to its levels in the near future. GV Films I don't follow, sorry.

deepak asked, any good cement stock to bet on

PRANAV SANGHAVI answers, Guj Ambuja, ACC, Ultra Tech amongst others.

jenner asked, Suggest some shares which will give 20 percent returns in 1 year duration

PRANAV SANGHAVI answers, You could look at ITC, SBI, IDFC but buy them on dips.

vijender asked, what is the three month target for bajaj hindustan and hindalco

PRANAV SANGHAVI answers, I do not have a price targets for stocks. But Hindalco could appreciate by 5% to 10% over three months.

jj asked, what the prospects pf reliance and colgate

PRANAV SANGHAVI answers, You could hold both. RIL has huge retail and expansion plans. Colgate is a leading FMCG player.

sweta asked, hello Sir, i want to buy L&T. Is it the right time to buy it?

PRANAV SANGHAVI answers, The record date for bonus on L&T is fixed for September 29, 2006. You could buy to get bonus.

destok asked, Whats ur outlook on hind petro?

PRANAV SANGHAVI answers, I have replied a query on HPCL in this chat. Could you please scroll back.

sushant asked, can you tell me something about rain commodities? IS there any restructuring going on?

PRANAV SANGHAVI answers, I am not aware of the same.

santosh asked, hi sir, Is it is worth buying Hindustan zinc @590 for long term(1+ year)?

PRANAV SANGHAVI answers, Yes.

prakash asked, hi, as of current day, how much we can expenct the sensex will go up further

PRANAV SANGHAVI answers, It depends on the time frame you look at. In 3 years it could touch 16,000.

parashuram asked, sir, i have RCOVL @ 312/- what is the prospect of this stock , shud i hold or sell

PRANAV SANGHAVI answers, Yes you should hold on to the same. It will merge with Reliance Infocomm and subsequently they will go ahead with their IPO plans.

destok asked, is aftek info a buy at 62/63 levels?

PRANAV SANGHAVI answers, I don't follow that stock, sorry.

jj asked, CAN U COMMENT ON THE MARKET IN SHORT TERM ( 3-12 MONTHS ) , MEDIUM TERM (12 TO 24( MONTHS ) AND LONG TERM WHEE ARE THE HEADED EVEN IF US SLOWS DOWN

PRANAV SANGHAVI answers, In the short, medium and longer term the markets will surely witness corrections as not only is it healthy for the market but also good to wean out weak investors. But in the longer term the market should rise steadily.

thapa asked, Mahindra Automotive Steels (MASL), which is in the steel forgings business, had acquired the Chakan unit of Amforge Industries (AIL). Earlier, the scrip listed on BSE at Rs 270, also the high for the day. Its low was Rs 160. The counter clocked a high volume of 12.16 lakh shares on BSE. The issued, subscribed and paid-up equity capital of the company before arrangement was Rs 8.22 crore, consisting of 82.21 lakh equity shares of face value of Rs 10 each, fully paid-up. MASL has allotted 1 equity share of Rs 10 each, fully paid-up, and 14% non-cumulative redeemable non convertible preference shares of Rs 31 each, fully paid-up, for every equity share of Rs 10 fully paid-up, held by shareholders in AIL. As a result of this scheme of arrangement, the issued, subscribed and paid-up equity share capital of MASL rose to Rs 28.02 crore, consisting of 2.80 crore equity shares of Rs 10 each, fully paid-up. Mahindra & Mahindra holds 47.11% stake in MASL. what is your opinion?????

PRANAV SANGHAVI answers, Hi could you please email this query to me for me to give you a detailed reply. But you could hold on to the stock in short.

ARCHI asked, i have 500 shares of reliance natural resource. till how long should i hold tham to book profit i bought them at rs. 30

PRANAV SANGHAVI answers, You will have to hold them for a bit to see profits.

ravi asked, please give your view on morgan stanley growth fund portfolio and investing in it till redemption

PRANAV SANGHAVI answers, I don't forsee a problem as they have some qood quality stocks in their stables.

shell asked, Is it right time to by Dr.Reddy' & Ranbaxy

PRANAV SANGHAVI answers, I answered the same query in my last chat. I would request you to refer to the same. Thank you.

anurag asked, Hi Sir, I want to know the minimum amount required to purchase the shares of any company

PRANAV SANGHAVI answers, Depends on which stock. For an Infosys you would need Rs. 1,794 currently to buy 1 share where as you would need Rs. 62 for buying a single share of IDFC.

destok asked, is titan a worth buy on sept F&O? and at what levels?

PRANAV SANGHAVI answers, If you are bullish on the same then you could. They also have expansion plans in the retail sector for the future.

akagarwal asked, what u think is the future of gmr infracture

PRANAV SANGHAVI answers, It is in the real estate development business so the benefits will take a bit of time to filter in to the company. But you could hold on.

pradip k asked, Hallo Sir, will INDIA CEMENT come down below 190 in near future? Which stock between 100 to 200 will give best return in coming 1-2 months?

PRANAV SANGHAVI answers, I would stick with frontline cement stocks like Guj. Ambuja, ACC or an Ultra Tech. There are various stocks you could look at but stay with the frontline blue chip so you won't erode much of your investment should there be a correction.

Kumar asked, Hi There.. Trying to get into the world of stock market... Any suggestions how to start.. Books etc? Thanks.

PRANAV SANGHAVI answers, There are tons of books. Get books by/on Ben Graham, Warren Buffet amongst others. But you must take up courses being offered by the Training Institutes of both the Exchanges.

Satya asked, How do you fell about HCL Tech?

PRANAV SANGHAVI answers, You could hold but I would switch with a frontline tech stock.

Rajib asked, I have 100 shares of Amtek India, purchased @ 116 p.s. Pl advise?

PRANAV SANGHAVI answers, Hold.

rajesh asked, can u please let me know the scrips for speculation today

PRANAV SANGHAVI answers, I do not speculate myself or encourage the same.

Shirish asked, I bought Tata Tea @ 832 Rs. Is it the right choice? Should I hold them for long term?

PRANAV SANGHAVI answers, You will have to hold for a longer term.

ARCHI asked, i am holding shares of midday multimedia and tips inds. they are below 50% the rate i bought. what is the future

PRANAV SANGHAVI answers, Midday has been rising sharply. Tips I have not followed. You could surely hold Midday as it is well below it's earlier highs.

rjjjjj asked, hi - what is guess on bse sensex by end of dec 2006

PRANAV SANGHAVI answers, I would stick my neck out and say 12,000 albiet post a correction.

sharekhan asked, Hi Pranav, Greetings!! I have bought KEC international 20 number@Rs.271. What's U'r take on this share? Can I hold it? If so, what is the target price and the target date? Thanks in anticipation,

PRANAV SANGHAVI answers, They have some large orders for Transmission Towers on hand but all RPG group companies are witnessing suuden activity and price rises so tread carefully.

sachin asked, Will it be wise to invest in stock market for a short term

PRANAV SANGHAVI answers, It will depend up on which stocks have you invested in.

Rajib asked, I have 15 PNB @ IPO, pl advise?

PRANAV SANGHAVI answers, You are sitting on good profit. But I won't recommend to sell as it is a top three nationalised bank with low NPA ratio.

ankur asked, i have 27 itd cementation at 690. hold or sell

PRANAV SANGHAVI answers, I am sorry I do not follow that stock.

Vikram asked, What is chances of Larsen and turbo can i know plz

PRANAV SANGHAVI answers, As I have said earlier you could buy for long term. It has good prospects.

ARCHI asked, i have baja hindustan shares bought at 470/= now the rate is much below the purchase rate. how long will it take to zoom up

PRANAV SANGHAVI answers, I would not be in a position to predict the same. The price will move in tandem with the company results and the sugar sector in general.

Devdatt asked, Is it worth buying Videocon Industries for long term?

PRANAV SANGHAVI answers, Yes you could look at it.

Vikram asked, hello sir can i know plzzzzzzz

PRANAV SANGHAVI answers, Know what?

JAN asked, WHAT IS THE FUTURE OF TATA MOTORS

PRANAV SANGHAVI answers, Tata Motors is a strong hold and will perform well in the future also.

meyyappan asked, what type of shares I can hold in this type of market

PRANAV SANGHAVI answers, Quality frontline stocks from the Cement, Tech, Infrastructure and Banking sector amongst others.

sujoy asked, Hi Pranav I have 100 shares of ITC for 182.32..wats the Future Prospects of ITC..when is the best time to Sell.

PRANAV SANGHAVI answers, It is just a little over that price. On a long term I would hold ITC. You could sell when a correction does take place and acquire it at a lower rate later.

PRANAV SANGHAVI says, Well it was great chatting with you all but I am afraid it's time for me to leave. Bye and hope to see you all next week.

Chat with Pranav every week!

Got a query on the stock market? Mail it to sanghavi_p2006