Ajit Mishra, Vice President, Research, Religare Broking, answers readers' queries on a weekly basis.
Here are his replies to some of the 'buy, sell, hold or avoid?' emails that we have received.
If you want his advice on your investments, please mail your questions to getahead@rediff.co.in with the subject line, 'Stock Market Query', along with your name, and Ajit Mishra will offer his unbiased views.
Milind Kulkarni: I am holding these stocks bought at much higher levels during last 5~8 years. I shall be retiring after 4 years & can hold on the folio if I can expect returns for next 6 years to 8 years.
Although the list of stocks is bit long, request your stock specific feedback based on below said question.
What is outlook for these stocks over 6 to 8 years & whether / which are the stocks to be sold & book losses and which one to hold? (Total Current Value is @ 10 lakh including all the stocks stated below)?
Ajit Mishra:
- Arvind Ltd @ 260 -- It’s better to exit.
- Bajaj Auto @ 3030 -- One can hold the stock
- Bartronics @ 148 -- Hold
- BHEL @ 116 -- Exit, challenges persist
- Cadila @ 380 -- Exit
- Cipla 504 -- Hold
- Coal India @ 300 -- Hold
- Castrol India @ 188 -- Hold
- CineVista @ 33 -- Exit
- HCC @ 41 -- Exit
- Kanataka Bank @ 152 -- Exit
- Kirloskar Ferrous @ 25 -- Exit
- Mothersons sumi @ 172 -- Exit
- NBCC @ 75 -- Exit
- NHPC @ 36 -- Dividend paying, can hold
- NMDC @ 130 -- Dividend paying, can hold
- NTPC @ 60 -- Hold
- ONGC @ 170 -- Hold
- Piramal Ent @ 2380 -- Exit
- Provogue @ 75 -- Exit
- Punj Lloyd @ 37 -- Exit
- Rallis @ 220 -- Hold
- SAIL @ 45 -- Highly cyclical, Exit on rise
- Sun Pharma 520 -- Exit
- Tata Motors DVR @ 170 -- Hold for atleast 3 -- 4 years
- Tata Steel @ 370 -- Highly cyclical, Exit on rise
- Ujjivan @ 335 -- Prefer Larger NBFCs (HDFC, LICHSGFIN and Bajaj Finance)
- VIP Clothing @ 24 -- Exit
- Wockhardt @ 750 -- Exit
- Zuari Global @ 725 -- Exit
Those given as exits are fundamentally weak.
Akshay Parikh: Dear Sir, kindly give your fundamental view on following scrips. I am a long-term investor. Can I hold these stocks for 2-4 years? Thanking you in anticipation.
Ajit Mishra:
1. Aegis logistics -- Hold
2. Karnatake Bank -- Exit
3. Karur Vysaya Bank -- Exit
Santosh Patil: I am holding following stocks. Your advice?
Ajit Mishra:
- Bharat Electronics: 100 @ 153 holding for 2 years -- Hold
- Bodal Chemiclas: 90 @ 159 holding for 2 years -- Exit
- IDFC Bank: 110 -- Exit
- IDFC: 110 @ 150 holding for 5 years -- Exit
- Mothersunsumi: 112 @ 138 holding for 5 years -- Exit
- Power finance Corp: 80 @ 100 holding for 3 years -- Exit
- Rural Electronics: 80 @ 113 holding for 3 years -- Exit
- PTC INDIA: 80 @ 55 holding for 4 years -- Exit
- Infosys: 40 @501 holding for 5 years -- Hold
Dora Raj JDR: What is your say on Va Tech Wabag and Jubilant Life Sciences?
Ajit Mishra: Both companies financial performance has not been good. Hence, it would be better to exit the stock.
Srinivas: I am holding the following stocks. What would you suggest? Please advise if I should hold or sell.
Ajit Mishra:
- Federal Bank: 500 @95.66 -- Hold
- JK Lakshmi Cement: 100@327 -- Hold for at least 2 -- 3 years
- Kalpataru Power: 20@497 -- Hold
- Ramco Cement: 100@776.12. -- Hold
Damien: I hold the below stocks and am a long-term investor. Please advise if I need to re-jig or sell out some of these stocks. Thank you in advance.
Ajit Mishra:
1. Birla Soft -- Exit
2. City Union -= Exit
3. DCB Bank -- Exit
4. Federal Bank -- Hold
5. IDFC First -- Exit
6. ITC -- Hold
9. Karnataka Bank -- Exit
7. KPIT -- Exit
8. ONGC -- Hold
9. RBL -- Hold
10. State Bank Of India -- Hold
11. Yes Bank -- Exit
Tanuja Agunde: I have basic knowledge of share market. I want to invest Rs 10 lakh for long term basis: 8-10 yrs. Kindly share your advise for me and which shares I can buy.
Ajit Mishra: One can invest in stocks like Reliance Industries, HDFC Bank, HUL, Asian Paints, ICICI Bank, Axis Bank, Maruti and M&M for the long term.
Ashish Seth: I have following stocks. Please suggest which stock I should HOLD or EXIT?
Ajit Mishra:
- Castrol: 100 @ 154 -- Hold
- Jubilant: 93 @ 641 -- Hold
- Maruti: 13 @ 6601 -- Hold
- Sun Pharma: 75 @ 427 -- Exit
- Thermax: 48@ 1084 -- Hold
- Vidhi Industries: 280 @ 86 -- Exit
Dinesh Kotwal: I am a senior citizen. I request for your advice on the scrips mentioned in my mail.
Ajit Mishra:
1. Aditya Birla Capital Ltd. -- If 3-4 year then hold, otherwise Exit.
2. Indian Oil Corpn. Ltd. -- Hold
3. Mercator Ltd. -- Exit
4. Mazda Ltd -- Exit
5. Moil Ltd -- Hold
6. Granules India ltd -- Hold
7. Tata Power Ltd -- Exit
8. Rashtriya Chem. & Fertilizres ltd -- Exit
9. Veto Switchgears ltd -- Exit
10. Subex Ltd -- Exit
11. Wabco India ltd -- Exit
12. Sintex Plastics Ltd -- Exit
13. Sintex Ltd -- Exit
G Mohammed: Sir, what to do with Alok Industries? I have 6000 shares @ 3.5.
Ajit Mishra: The company’s fundamentals have not been good. It is better to exit the stock.
Ashish Singh: Please advice on UNITECH LTD and it's fundamental as I hold 11138 shares @ Rs 6. Also tell me about the company’s future prospects.
Ajit Mishra: The company has poor fundamentals and has been making a loss even at operational level. Hence, it would be better to exit the stock.
Naveen Arora: I am investing Rs 3,000-4,000 in the following stocks on a monthly basis with a view of about 3-4 years. Looking for a CAGR of 15-18 %. Your advice?
1. HDFC Bank
2. HDFC Life
3. ICICI Prudential Life
4. Reliance
5. Pidlite
6. Larsen & Tubro
7. Tata Global Beverages
8. Titan Industries
9. ICICI Bank
10. Bajaj Finance
11. Kotak Mahindra Bank
12. Bank Nifty
13. TCS
Ajit Mishra: The stocks mentioned above are fundamentally sound and can deliver healthy returns over the long term.
Dushyant Chaudhari: Shall I buy Yes Bank at CMP?
Ajit Mishra: There have been concerns over the asset quality and hence it would be prudent to avoid at this point in time.
Chuaungo Nunthara: Kindly help me decide what to do as far as 'buy, sell, hold or avoid' on the following stocks which I hold in my portfolio:
Ajit Mishra:
1. Arvind Smartspace at 136 -- Exit
2. Navin at 650 -- Exit
3. Nocil at 128 -- Exit
4. Ashok Leyland at 91 -- Hold for at least 2 -- 3 years
5. Greaves Cotton at 133 -- Hold
6. Rajesh at 708 -- Hold
7. Dwarikesh Sugar at 46 -- Exit
8. KEC int at 334 -- Hold for at least 2 -- 3 years
9. Minda at 350 -- Hold
10. Infibeam at 40 -- Exit
Krishnamohan Charyulu: Sir, I have following shares. Can I hold or sell the above stocks?
- Reliance Industries: 162 @450
- Avenue Super Market: 4 @ 1865
- SBI: 20 @ 225
- Cadila Healthcare: 750 @ 225
- Zydus Wellness: 26 @1325
Ajit Mishra: All these stocks except Cadila Healthcare can be held for long term.
Dr Arun Karnwal: I have these stocks in my portfolio. Please give your suggestion.
- Canara Bank: 54 at 225.18
- CL Limited: 537 at 8.18
- EI Hotel: 10 at 180.35
- GAIL: 21 at 154.36
- Infibeam: 55 at 60.64
- Mothersumi: 61 at 238.77
- NMDC: 96 at 126.89
- ONGC: 37 at 135.15
Ajit Mishra: Except GAIL, NMDC and ONGC we would recommend exiting rest of the stocks.
Balraj Kar: I have a PMS of Rs 30L with ICICI. The inception date was May 2018 and now the value is 28.5L. What is your suggestion, should I keep it or get disposed of? Or should I take partial withdrawal by timing it to a rally during Diwali or so?
Thank you in advance for your time and kind suggestions.
Ajit Mishra: Dear Sir, without looking at the portfolio we would not be able to comment. However, one should do a thorough risk profiling before investing in the any instrument.
Mahesh Dave: I hold NBCC, NCC, SAIL, NOCIL bought before 4-5 months. Now prices of these stocks have gone down by 20% and more. I am a long-term investor and can hold for 2-4 yrs. Please advise me whether I should hold or book my losses? Thanking you in advance.
Ajit Mishra: All the stocks mentioned are highly cyclical but are fundamentally stable. Further downside cannot be ruled out. Hence, prudent approach would be to exit on rise.
Photograph: Reuters.
