Stock Query corner - Free Stock Advice in India Online



InvestorZclub is pleased to offer Stock Query resolution to its esteemed readers. Readers are requested to write their query in the comments. Amit Agarwal will reply to the query in the comments only.

This service is only for the members of the blog and is absolutely free. So please join the blog as member before logging your request. The members are requested to send one query at a time about the company on which they seek advise. Queries will be resolved selectively in the order of sequence.

To become a member of the blog please join the facebook community of InvestorZclub below:

-->

84 comments:

Aravind Baid said...

Please advise on the long term prospects and 6 months price target of ICICI Bank.

Thanks
Aravind Baid
aravindbaid@yahoo.com

Amit Agarwal said...

ICICI Bank is India 2nd larget bank and is fundamentally very strong. After the acquisition of Bank of Rajasthan they have more than 1500 branches now across India. On the performance front the bank did very well in the 4th quarter, reporting a consolidated PAT of Rs. 1568 crore up 17% YoY, driven by strong core operating performance.

Focus on improving asset quality and better branch productivity will bring positive surprises going forward.

On the valuation side at the CMP of Rs. 1020 the stock is trading at a Price to book multiple of just 1.8 on FY12 Book Value basis which is far lower than HDFC and Axis Bank multiples.

So you can remain invested in the stock for a target price of Rs 1400 in 1 year time frame. The target price is given based on the expected PBV ratio of 2.5 on FY-12 BV.


Good Luck!
InvestorZclub

Pradip said...

Bought 1000 JK Paper at Rs. 60. CMP is 47. What is the future. Shall I sell or hold. My time frame is 1 Year.

Amit Agarwal said...

JK Paper is India's largest branded copier manufacturer company. Its is into all sort of paper manufacturing ranging from writing & printing papers to speciality paper and packaging boards. The company has been witnessing phenomenal performance in past 3 years. For FY-11 the company did a revenue of Rs. 1233 crores and PAT of Rs. 106.5 crores. The EPS for this year was 13.62.

At the current market price of 47 the stock is trading at a PE multiple of 3.4 which is extraordinarily cheap. Also the recent deal of International paper with Andhra paper mills will rerate the sector going forward.

Hence the advise is to hold it tight and wait for the sector to get rerated. The stock has potential to double from the current levels.

Trilok said...

HI , I have 10000 birla power shares@ 2.13 , could you please suggest what is the future of this script?

Amit Agarwal said...

Hi Trilok,
Would surely suggest you about the script and its future. But as per our protocol you need to become member of our blog before you avail this service. Instruction to become member is given above.

Best Regards
InvestorZclub

Trilok said...

Hello Amit ,

I am member of blog now.

Amit Agarwal said...

BPS is a yash birla group co and is involved in genset, UPS and inverters manufacturing. The company has been growing very slowly since past five years. In FY-07 it did a revenue & profits of Rs. 225 crores and Rs. 24.23 crores respectively while in FY-12 it registered a revenue and profits of Rs. 292 crores and Rs. 27.17 crores.

The stock has severly underperformed in past 2 years and has fallen from the levels of Rs. 4 per share to now Rs. 1 Per share. But even after this fall the valuation is on the higher side. Though it look cheap on the ticker price, but it should be remembered that it has a FV of Rs.1 and not Rs. 10. Also the stock is currently trading at a PE multiple of 8 times which is neither cheap nor expensive for this kind of business.

As you said your purchase price is twice that of current market price, it seems very unlikely that you will get your price in next 1 year until and unless the company does phenomenally well in financial terms. So I would suggest that you get out of the counter on any rally towards 1.25 - 1.30 and invest in some other companies which has clear visibility for earnings.

Several investment ideas are published in this blog at regular intervals. To get the latest investment ideas please visit the "Investment idea" & "Trading ideas" section of the blog.

Good Luck!
InvestorZclub

Trilok said...

Hello Amit,

I came to know that BPS signed a plan for power project of 10000cr with gujrat government. So they might come up with FPO, is there any changes of recovery in this case.

Trilok said...

Hello,

I have one more question related to RMCL, is this stock a buy on current price ?

Amit Agarwal said...

Radha Madhav Corporation Limited or RMCL is a very small cap company with market cap of just 24 crores. The company is a loss making company and one should usually avoid investing in such smaller market cap companies as they are susceptible to manipulations. A micro cap company should only be considered when the business prospect is good and valuations are compelling. So my suggestion would be to exit the counter and invest in some established names.

Regards
InvestorZclub

Abhijit Singh said...

What's your view on Reliance Industries? I have bought 100 shares at 700 rupees. I can hold for 6 months.

Amit Agarwal said...

Reliance Industries is going through tough times as the output from KG D6 basin has fallen to 20 mmscmd vs the estimated 60 mmscmd level. Refining margings are also under pressure. Due to these factors stock is grinding slowly and has fallen around 20% in last 3 months.

But at the current level of 680 it is attractive purely from the angle of buyback. Everyday company is buying back around 1 million shares form the market. The company announced a buyback in Feb this year under which it could buyback max of 12 crore shares at a maximum price of 870. So far the company has bought back only 16 million or 1.6 crore shares.

I expect the company to start buying shares aggressively at current levels as the stock is trading at significant discount to the max buyback price.

So my advice to you would be to hold for now but exit once it reaches 750 levels.

Best of Luck!

Vikram M G said...

Wat is the view on educomp

Amit Agarwal said...

Technically the stock has had massive crack from 500 bucks to 140 bucks, which itself suggest that the stock will have to put in lot of effort to climb as every upmove will meet lot of sellers. Also it tlls you that something is being coocked inside the company and it seems that most of the insiders have already sold the stock.

Fundamentally the company is having issue with it's flagship product edusmart whichcontitutes the major part of the revenue. Also as rightly said by Mr. Buffett that one should be wary of very fast growing company. In FY-07 the company mad a profit of 28 crores while in FY 11 it made a profit of 344 crores, a jump of nearly 14 times in 4 years.

Though valuation wise it looks reasonable at the current market price as it trades at around 5 times FY 11 EPS but the earnings could fall significantlly if there is something wrong in the company. Similar situations took place in KS oil, Akruti City, Unitech and many other companies.

If you have the stock bought at higher price, then I would recommend exit at any rally and put that money into companies like Hindalco or ICICI Bank as they are not only stable and large caps but also significantly cheap. If you haven't bought the stock please stay away from it. In fact any company with even a small taint should be completely avoided as you and I not being involved in the company operation can never gauge how much damage is happening inside. So its better to stay away from them istead of bottom fishing

Anonymous said...

I have bought 1000 shares of kingfisher Airlines at rs.14
Could you please advise me?

Amit Agarwal said...

It would have been great if you would have disclosed your name, but anyway as far as KA is concerned, it's not a buy at any price until some policy actions in aviation happens. The company has debt which is 10 times the market cap of the company, and has destroyed significant amount of shareholders wealth since its operation.

Mallya himself is not committing single buck anymore and you gave 14,000 to buy the stock. That's interesting! He entered the business for fancy and to sit at the interview table for recruiting beautiful air hostesses which has now become a bone stuck in his neck.

I think you should exit on any rise and take the loss as the stock cannot recover unless 49% FDI in Airlines is approved, which appears a big task given drama running at the centre.

I have zero faith on sybarite Mallya and hence I always recommend to stay from his companies, as there are better well run options and sectors to invest.

Anonymous said...

Dear Amit,
I am stuck with Allahabad bank at 180 bucks and the stock seems to be falling everyday. Kindly suggest what should I do?

Sanuj Nair, Coimbatore

Amit Agarwal said...

Hi Sanuj,

At the current market price of Rs. 130 you seem to have been siting on almost 30% loss. You haven't mentioned how much quantity you have bought but if you have the capacity to average it by equal quantity then I would suggest averaging your purchase at around 120 levels. That will bring down your cost to 150 levels. The reason I am suggesting a level of 120 is because I see a further downside in the stock by 5-7% in next 2 to 3 months. There is lot of negative sentiment around as far as public sector banks are concerned due to rising NPAs from farm and non farm sectors. Hence the stock could remain under pressure for sometime to come.

However Allahabad bank is a very strong bank with excellent franchise and at the cuurent market price the stock is among the cheapest public sector bank in the market. It's projected FY-13 BV is more than 210 which provides sufficient safety for the stock on the downside. If you get to average your stock at 120 levels you could see a price of Rs. 200 on the stock by december 2013.

Anonymous said...

about itc

Amit Agarwal said...

Full analysis given here...

http://www.investorzclub.com/2012/10/itc-its-time-to-sell.html

Anonymous said...

Jet Airways (India) Ltd.

Amit Agarwal said...

Queries from anonymous users will not be answered. Please join the community before posting your query, I will be very happy to provide my view on your stocks...

Thanks
Author

Vikram said...

Jet Airways (India) Ltd? nw member

Amit Agarwal said...

As far as Airline industry is concerned, it seems that things will never turn around, that is when one should seriously consider that sector. Jet Airways per se is the largest private carrier in India and is expected to stay alive in future. FDI in Airlines is also positive in the long term for the sector as a whole. Once some stability is achieved in the sector lot of foreign partnership will happen which will make the stock go many times from current levels. But until then they are not going to move up substantially. So if you have a view of minimum 2 years then you can enter the stock and keep averaging on weakness. Remember don't put more than 5% of your portfolio in this stock.

Also At less than 3000 crores mkt cap one has very little to loose if one invest with a horizon of 2+ years.

Best of Luck

Amit Agarwal said...

The stock has moved 50% since the above reco on the talks of stake sale in the company. The view still remains the same. But profit booking is advised around 600 levels.

Vishpal Saxena said...

Hi,

I am new and I do not know about stock market, but I have an interest and want to learn how people earn money in stock market but doing investment. Please help me in this regard.

anshu kumari said...

Hi,
This is amazing site for all investors.I think this is one platform to solve all problems regarding investment and stock market.I thanking from the core of my heart.
Regards,
Amar

sandeep said...

Hi,

Please advise me about Axis bank and PC jewellers share.

Amit Agarwal said...

PC Jewellers, I would recommend an avoid as jewellery business is a hot business now and are richly priced based on the nature of the business (low return capital intensive). Also gold has had dream run in past 6-7 years when they have made 90% of their networth. So I don't trust management and the business model so as per me it's a complete avoid.

Axis bank is a phenomenal story and should be accumulated on correction.

Sandeep BS said...

Amit...you are more regular here in "Stock Query" section or Forum section? Where can i get your valuable opinions quickly.

Vaibhav Patni said...

I have 100 DIC India shares @235.
I can wait for 6 months.
What should i do??
Should I book loss or should i hope for some profit from here too.
Kindly Advice.
Thanks In Advance.

Amit Agarwal said...

DIC India is a part of the World's largest manufacturer of printing Inks and allied material, DIC Corporation of Japan.

DIC Japan has a 71.75% share holding in DIC India Limited through DIC Asia Pacific Pte Ltd, Singapore.

DIC India is one of the largest companies in the Indian printing, publishing and packaging industry segment, serving top-of-the-line newspapers, magazines, packaging and printing establishments in the country.

So business wise the company is sound and has MNC backing as well. Valuation wise the company is expected to register a revenue of around 720 crores and Net profit of approx. 20 crores. At the current market price of 195 the company commands a market cap of 180 crores and a PE multiple of 9 times which is reasonable.

Since small caps are out of favour currently the stock is witnessing some selling pressure. I would suggest a hold for a target price of 240 to 250 in one year if markets remain buoyant.

Beyond that I am not that bullish on the stock.

Best of Luck!

Anonymous said...

Dear sir,bought suzlon feb 20 pe @.30 ...Kindly suggest at what level should I book profit

Amit Agarwal said...

The stock query service is only available for members... Please join FB community before posting your query... Also no derivative queries are answered here, this section is for stock based query resolution..

Thanks
Amit Agarwal
Author

harshit said...

YOUR VIEWS ON AUROBINDO PHARMA BOUGHT AT 204. EXPECTING 225-230 RANGE IN 2 MONTHS..

Amit Agarwal said...

Auro Pharma has had massive runup from Aug 2012 to Jan 2013 and almost doubled from 100 levels to 200.

Usually after such run up stocks take breather. On top of that there is some negative news going around the company regarding involvement in money laundering. This will keep the stock subdued.

However it is one of the cheapest pharma stock and trading at around 16 times CY EPS. Next two months range I am not very sure about but over couple of years time frame the stock should deliver decent return from current levels.

Best of Luck!

Vaibhav Patni said...

Sir,
What abt Cairn India ??
Best time to get into it or does it incline to levels of 240-260 from here too ?
Thanks In Advance.

Moreover..As u said, ALLAHABAAD Bank having strong support around levels of 130, it is lagging at 136-137... Is it a good time to get some number of shares.???

Amit Agarwal said...

O certainly yes for Allahabad bank, you can start accumulating small lots and add on weak days. You can also get full analysis of the stock here: Allahabad Bank

Cairn India is also very good but the technical setup is not looking that great. It seems it might fall 4 to 5 percent more as the stock hit fresh 52 week low on friday.

Start accumulating stock at say 288, add on further fall if it goes towards 275 - 280. The stock should bounce back from there with a possible target of 310 to 320 in next 3 months. So it's more of a trading bet than long term investing as the company is fundamentally very strong but is part of a sector which is highly regulated and controlled.

Anonymous said...

hello sir, in ur stock reco i read buy call on hindalco which now in 2 digits. is it attractive buy? is metal sector is worth adding in portfolio?

Amit Agarwal said...

Well lot of people disagree with me regarding my bias towards Hindalco as the stock has been a consistent underperformer. But I still feel that Hindalco will do very well over 2 years period if not 1 year.

The logic is simple, one cannot stop using aluminium in airplanes and cars as there is no substitute for this material. Beside that Hindalco is India's largest copper smelter as well which provides diversification to the product portfolio.

Hindalco is world's cheapest aluminium producer and other major players such as ALCOA is bleeding due to lower market price of aluminium vs. it's production cost.

Economics will bring in the equilibrium and the stock should do well post that. Also hindalco is suffering due to local issues such as delay in MAHAN coal block clearance, strike in orrisa plant etc. But all these thing will change and being the flagship company of Birla group it will recover faster than any other competitor.

Valuation wise the stock is having a forward year BV of 185 and the stock is languishing at 100. I don't see how people investing at this level are not getting an asset which is very cheap.

I believe in the company but yes I will not sell my household jwellery and invest everything in the stock. I will stick to my portfolio strategy and not invest more than 10% of my investment in the company.

Best of Luck!

ravinder said...

Hi Amit,

I hv Dewan Housing Finance Ltd purchased @ 200. It is the future this stock Ravinder S

Amit Agarwal said...

DHFL is a conservative private sector Housing finance company with solid track record.

Recently Housing finance companies have come under a bit of pressure due to the slowdown in housing sector and rising competition. However the company has fairly good franchise and asset quality.

Valuation wise the company's expected FY-14 BV is around 220 which makes it very cheap compared to their larger competitors like HDFC and LIC HF.

You can add to your position on further fall and hold on for a year. The possible level that can come in next 12 months in at least 220, assuming a valuation multiple of at least one times price to book.

Ujjwal Chakraborty said...

Dear Amit,
Request your opinion on Suzlon, Developement Credit Bank and SREI Infra with a medium to long term prespective. Now among these 3, DCB and SREI looks good from financial angle and also they tend to trade within a price range, which do you find comfortable with an investment angle. Suzlon is having its own problems but it is still retaining its cash cow with it. Recent selling of promoter stake in the CDR process has bought it substantially and also the quater numbers are not comfortable. But still in terms of business do you find it comfortable?

Amit Agarwal said...

Suzlon is a dead stock. The company is reeling under mountain of debt and the promoters have lost interest and the aggressive attitude that they had 5 years back. The stock is down more than 90% from it's high. So there is no point in tracking or even looking at that stock. Avoid suzlon at all cost not even at 1 buck. If you scroll above you will see that similar kind of view is given for kingfisher airlines.

Regarding DCB, it is again a dissapointing story as it cannot report profits when some of the larger and midcap private sector lenders are reporting huge profit numbers. There is no point in backing that horse. Rather one can look at some very undervalued PSU banks.

SREI Infra, I am sorry to say that I don't know much about the company. However if I have to put my bet on one infrastructure finance company it would be IDFC.

Hope it answers your query.

Best Of Luck

Vijay P Singh said...

Hi Amit,

I went through your blog and found it very informative and useful.
Could you plz give your views on Yes Bank & Ajanta Pharma.

Thanking you.

Vijay P Singh

Anonymous said...

why IL & FS investment managers is down even though all numbers luks gud?
and
do u have twitter account ?if yes , send same

from
sonia kapur

Amit Agarwal said...

Just to reiterate Anonymous queries will not answered.

Regards
Author

Rohini said...

I have bought Wipro at 450 rs, pls advice now what to do?

Amit Agarwal said...

Wipro after demerger of its FMCG cum electrical arm is now will be valued based on IT earnings only, and IT I have not been bullish since past 6 months. I believe Wipro will settle somewhere around 300 from where the stock will start to look attractive from long term perspective. If you haven't bought much quantity you can start to average at around 300, else you might have to wait for a year to get a price of around 400. At that point you might exit and put your money into some other stocks.

Otherwise If I would have been at your place I would have sold 50% of it at 340 and invest that money into Corporation bank for at least one year's time frame at around 390 - 400 levels. Corporation bank will definitely see a level of 600 in next 1 year if economy continue to recover.

Best of luck!

Ujjwal Chakraborty said...

Dear Amit,
Request if you can give your views on IL & FS investment managers. I am having delivery quantities with an average price @ 22.47?

Also, at present levels, can I take position in BOB, UCO Bank or should I wait for a correction? If so then what would be the appropriate level for these two

Regards
Ujjwal Chakraborty

Amit Agarwal said...

Sorry I am not tracking IL & FS IM. I believe it's a good company but cannot provide any comments with confidence as I never tracked the company.

Now the question of tacking fresh position shouldn't even come to any ones's mind at this point of time. Don't feel left off. Market is a place where the opportunities are cyclical and certain. Wait and you will definitely get better levels in coming time.

Ujjwal Chakraborty said...

Dear Amit,
Can you give your views on Coal India? What would be the appropriate level for it? I am having positions at 365 levels. Should I average it?

Regards
Ujjwal

Amit Agarwal said...

Fundamentally Coal India is a very strong stock but there is too much regulation in the company from Govt side. 365 is quite a high level for the stock and I think it will take a while for the stock to reach that level.

The advise would be to hold and wait for the developments to happen and I think in next 1 year you could see your level when you can choose to exit. You can also average it if the stock price comes to 280 levels.

Best of Luck!

Ujjwal Chakraborty said...

Dear Amit,

What is your take now on Titan Industries, in light of the recent regulation of RBI, regarding Gold import on cash basis. Recent news are showing that Titan is forced to consider their business / financial model and stock has been beaten a lot?

Regards
Ujjwal

Amit Agarwal said...

Titan is an avoid just bcoz of the uncertainties regarding gold lease and it's impact. It seems that going forward ROE for the company is going to come down substantially due to higher interest cost on increased working capital.

The stock is not chap and trading at more than 20 times current year EPS of around 10. It's an avoid at this point of time...

Ujjwal Chakraborty said...

Dear Amit,

Request your views pl on Bank of Baroda. I am having average position @ 676. Is it worth averaging now?

Regards
Ujjwal

Amit Agarwal said...

It's a good largecap PSU bank second to SBI. Also trading at significant discount to it's one year forward book value. You can keep buying the stock on dips at 500 - 600 range. In 3 years time the stock could touch 1000 levels.

srinivas t said...

Hi, longback i buy shares of Rpower @ 98/-, i'm waiting when the share value will go high, Any expectations for the share...!!

Amit Agarwal said...

Power sector is in mess due to unavailability of sufficient fuel and high coal import prices. Rpower is a good story but will take time for your price to reach 98 levels.

At current market price of 67 it has a market value of 19000 crores while Tata Power, the much established player, has a current market cap of 20,500 crores.

If the number of shares with you is less you can try to average it at 60 bucks and exit on any rally towards 80 and invest that amount into Tata Power if at all you want to stay with Power stocks.

Good Luck!

Vikram M G said...

HAVE BOUGHT ASHOKLEY AT 22, PLEASE SUGGEST?

Amit Agarwal said...

Commercial Vehicle is in a terrible state right now and with interest rates going up in short terms, it's not going to help the company either.

It seems you bought the stock at quite expensive market value of 6000 crores plus. But being a niche player and existing since decades you should get your price in a years time. If you haven't bought large quantity and can afford to average it then buy equal quantity at around 11 bucks and bring down your average cost.

Ujjwal Chakraborty said...

Dear Amit,

Request if you can give your comments on HCC, particularly now that in Q1FY14 it has turned profitable.

Also read your article on dividend yield with relation to Allahabad Bank. I am having it in line with your model portfolio. In Q1FY14 it has posted a fall of 20%. You think it is worth averaging?

Regards
Ujjwal

Amit Agarwal said...

HCC in my view is damaged beyond repair. I know that lot of people have that stock being stuck at higher price, but it is now a penny stock and that is something I avoid on first hand, a low priced or penny stock. It's tough to tell what to do if you have it as it is really difficult to sell it at loss. If that is not going to damage your portfolio then it would be wise to sell it at any rise and invest is some other story.

Allahabad Bank is definitely a buy at 68 from at least 2 years perspective.

Ujjwal Chakraborty said...

Dear Amit,

What is your view on YES Bank and IndusInd Bank? Are any of them worth taking at this level?

Regards
Ujjwal

Amit Agarwal said...

They play on bulk deposits and the interest rate yield curve going to stay inverted for longer than we all are expecting hence they will witness margin compression and rising NPA in coming quarters. On top of that I don't have much valuation comfort there. I would prefer Allahabad bank and SBI from public sector banks and Axis Bank from private sector as they are big and trading at reasonable valuations...

Ujjwal Chakraborty said...

Dear Amit,

Wishing you Happy New Year 2014.

I want to make SIP in Allahabad Bank. Please suggest whether the present levels of Allahabad Bank and market for making this SIP. My time horizon will be 1 year for SIP and investment horizon will be around 2-3 years

Regards
Ujjwal

Amit Agarwal said...

Allahabad bank is a good contra bet, but never chase it on rally. Try accumulating the stock on declines. I believe it should touch at least 150 in couple of year time.

Ujjwal Chakraborty said...

Dear Amit,

I am having the following stocks;
Bank of Baroda @ 584 (average cost)
DCB @ 43 (average cost)
Mirza International @ 25 (average cost)
Voltas @ 78 (average cost)
HPCL @ 229
Hindalco @ 97
Crompton Greeves @ 78
BPCL @ 354

Request if you can suggest that whether I should get out of them in the present market or wait more

Regards
Ujjwal

Amit Agarwal said...

Broadly it appears you are sitting on decent profits. You can book your gains in Hindalco, Voltas and crompton greaves.

Ujjwal Chakraborty said...

Dear Amit,

Request if you can suggest your views for investment in the following stocks with medium to long term horizon period;
1. Gamon India
2. Madhucon
3. Zicom

Regards
Ujjwal

Amit Agarwal said...

Sorry don't track any of these names. All of them appears to be a sub 500 crores company. Without a thorough understanding of their balance sheet and current business condition it would be unjustified to give any comment. personally I avoid investment in such small companies.

Anonymous said...

amit share u r views on VTM LTD

Amit Agarwal said...

VTM Ltd is a company with less than 100 crores market value and is too small for any worthy look for me. Hence no comments.

Anonymous said...

dear amit
My question is, if someone has joined paid service for stock consultancy,gets short term capital gain & long term capital gain in a financial year .does he has to deduct fees (paid for stock consultancy) from short term capital gain or from long term capital gain for computation of income?
If a person has another business too apart from investing in stocks . can he add short term capital gain in another business income if another business income with in tax free limit ?so that after adding if any amount exeeds after tax free limit ,he can pay 15% tax on that

Amit Agarwal said...

consultancy fee paid for stock advise is an expense incurred while buying or selling the shares, hence deductible from the capital gain.

Ram Singh said...

Sir, i hold Visesh Infotechnice at Rs.0.45 level now price is Rs.0.15 level, if any chances again to touch above buying level, what is your opinion.

Amit Agarwal said...

Sorry no opinion on penny stocks. They are anyway junk. get out at any price rise and stay with names with good business prospect and sound management.

Vaibhav Patni said...

Hi Amit,
I have Amtek auto purchased at an avg price of 206.
Please suggest, shall i avg the price from here or what ?

Also I purchased NALCO because of govt disinvestment plan at 37 which again is giving me loss at current prices ?

Want to know your views on these 2 scripts.

Amit Agarwal said...

Amtek Auto looks scary as stocks doesen't fall like cliff without any serious issue. If its a fall out of false rumor it recovers in a day or two. I have heard that it's loan is going to become NPA but banks don't disclose. If you have small quantity I would suggest you keep it but if your holding is large reduce it to the level which makes you comfortable holding it for 2-3 years. But averaging is not a good idea as 50% fall in matter of weeks suggest something is really bad inside.

NALCO is the only cash rich Aluminium company in India. But beig exposed to single commodity is making it's life tough and a govt managment on top of it is an icing on the cake. You can hold on to your holding in NALCO and buy more on steep corrections. Avoid putting more than 10% of your money to any stocks.

Hope it helps.

Vikram M G said...

Hi Amit, what is your view on hindalco & hdfc.. what are the best stocks to buy at current times.

Amit Agarwal said...

One stock is you have it in your question itself. Hindalco is an excellent company and is a great buy at 80 level. The stock has been beaten down to levels far below it's replacement cost. Commodity cycle is 7 years old and could turn any moment inspite of weak demand as supply side adjustments are happening at fast pace. For 2 years perspective stock has potential to give 100% return. HDFC is a 15-20% compounding story if you can but it on correction but big wealth is already made there. HDFC & HDFC Bank are the most populous trade in India.

Vikram M G said...

Hi Amit,
As markets have fallen , i want to invest my money. Please Name best 4 scrips at the earliest before tom market opening.

Thanks a lot in advance for help.

PS: Also how do you feel about these scrips.
1.) hindalco
2.) hdfc bank
3.) wipro
4.)Rcom

Amit Agarwal said...

You can refer to my model portfolio for stock ideas. Always remember to diversify and do not put all your capital in one stock as "unexpected always happen"

Post a Comment

Do you like my blog?

If you enjoy reading InvestorZclub blog, please help spread the word by sharing this site with your friends.