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Should you BUY these stocks in 2013?

Last updated on: January 10, 2013 17:26 IST

Should you BUY these stocks in 2013?

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Narendar Lokwani

Last week we asked readers to mail their queries about stocks they want to buy, sell or hold. Here's the response to their queries.

The stocks discussed today range from bluechips to mid caps to absolute junk stocks.

You can mail your queries to stockfundoo@rediffmail.com.

Please find herewith an attachment of my current Portfolio. You are requested to pl. advice me to hold or sell it this stocks. For investment which is better option e.g. Mutual Fund or Share market.

You have a list of 10 stocks in your portfolio and all of these are below your purchase price currently. Stocks like Renuka, Rpower, SJVN and Praj Ind are fundamentally good quality stocks, however your other six holdings BirlaPower, JSW Ispat, MavensBio, TTML, UgarSugar and ZenithBir are not fundamentally worth holding at this point of time.

So you can divide your portfolio in two parts: Fundamentally good portfolio with four stocks and fundamentally bad portfolio with six stocks. Your strategy to come out of this situation should be to aim for decent profit in your good portfolio and aim for at-least your cost/purchase price for your bad portfolio.

Over a period of time, eliminate your bad portfolio as and when you receive your cost price and increase investment in good portfolio on dips and at lower levels. Thus over a year or so of cleansing, you would have only few good stocks in your portfolio and should be able to make good profit on those.

Disclaimer: This article is for information purpose only. This article and information do not constitute a distribution, an endorsement, an investment advice, an offer to buy or sell or the solicitation of an offer to buy or sell any securities/schemes or any other financial products /investment products mentioned in this article or an attempt to influence the opinion or behavior of the investors /recipients.

Any use of the information /any investment and investment related decisions of the investors/recipients are at their sole discretion and risk. Any advice herein is made on a general basis and does not take into account the specific investment objectives of the specific person or group of persons. Opinions expressed herein are subject to change without notice.

StockFundoo.com provides insightful and in-depth capital markets analysis. Powered by fundamental deep value investing and technical analysis, we offer detailed stock analysis updated on a daily basis.


Image: Price movement of Praj Industries from February 2012


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I have purchased Balrampur Chini Mills @Rs 67/ share for qty.1000 shares, presently it's trading about 25 per cent below i.e. around 50/-share. Please suggest/advice what to do.

Balrampur Chini had a decent Sept quarter, where it made revenues of Rs 888 crore and was profitable at EPS of Rs 2. At this run rate, annual EPS could be as high as Rs 8, wherein the stock would be available at PE ratio of just about 6 or so.

Firm is trading close to its book value of Rs 50. FIIs are increasing their holding in the stock, and have 17.37 per cent of holding vs 16 per cent one quarter ago and 15.02 per cent two quarters ago. Current market cap is just about Rs 1200 crore, hence it is trading at decent valuations for a long-term investment.

Technically speaking, 46 to 51 is a congestion zone and once Balrampur trades out of this zone, it would reach resistance levels of Rs 55, Rs 60 and Rs 66 respectively. Currently the stock is sitting on good support of Rs 46, hence can be accumulated. You can see levels of up to Rs 70 in next 2-3 months.


Image: Price movement of Balrampur Chini Mills from February 2012


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Should you BUY these stocks in 2013?

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I have few shares of ICICI Bank bought @ Rs930/unit in 2011. Is it the right time to sell it or should I hold?

In the year 2013, interest rates are expected to decline through out the year, which increases profitability of banks, as lower rates prompts more loans and borrowing and hence greater business and net margins for banks. If you look at FII holding of ICICI Bank, it is going up quarter on quarter, from 35.9 per cent to 36.48 per cent. General public shareholding is as low as 5.22 per cent and is going down. Hence knowledgeable institutional investors are accumulating the stock.

Technically speaking, Rs 1100 is the nearest support, so you shouldn't be worried till Rs 1100 is intact. Rs 1270 should be a good place to book partial profits. At about Rs 1450, you can book complete profits. You can see these higher levels in next 12 months.


Image: Price movement of ICICI Bank from February 2012

Tags: ICICI Bank , FII , BUY

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Kindly suggest about CONCOR, Container Corporation Of India. At this level whether stock can be accumulated or at what levels?

CONCOR is a fundamentally strong stock however it is not a fast moving or swing trading type of scrip. The stock has habit of staying in range for a long period of time, during which investor patience might run out. Currently the scrip is trading between a range of support of Rs 825 and resistance of Rs 1025.

Next resistance level is at Rs 1185, and above which next strong resistance is at level of Rs 1450. You can see these levels in next 6-12 month timeframe. Can be accumulated at current levels with a stop loss of Rs 825.


Image: Price movement of Container Corporation Of India from February 2012


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Can you help me regarding two stocks (Cravatex and Foods & Inns)? Can I go ahead and buy or should I wait?

I looked at financials for Foods & Inn and it is posting losses from past few quarters.

Also the liquidity seems to be extremely poor, so if you buy in large quantity, firstly buying will be an issue and then selling would be another problem. Market cap seems to be very low, so in case of company turning profitable for a quarter and liquidity improves one can take a long position.

Cravatex seems to be a robust firm, with high promoter shareholding. This is a regular dividend-paying firm as well. Revenues are in uptrend with good profitability, and quarterly EPS is at Rs 9.85, which results in annual EPS of about Rs 40. Cravatex can be accumulated at current price and at possible declines.


Image: Price movement of Cravatex from February 2012


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I have 500 + share of Prestige Estates Projects bought at Rs 173. Should I hold it or sell currently it is trading at Rs 186 levels. My time horizon is 3 months, Please suggest/advice what to do.

Prestige Estate has hit a resistance at Rs 189. Last two daily candles have been red rejections, and there is support at Rs 171 and Rs 156 respectively.

My view is Rs 173 is a pretty high price to get entry into Prestige. Quick recommendation is to book profit and reenter at lower levels. Fundamentally as well, the scrip is richly priced.


Image: Price movement of Prestige Estates Projects from February 2012


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I am having 1lac shares of Shree Ashtavinayak Cine Vision at avg price of Rs 4.85, do u see a possibility of it reaching that level in a year or so? What is the downside or better level to exit with minimal losses? I know fundamentally it's bad share, no regular income model. I was a novice got trapped, but don't have courage to book such huge loss. My portfolio's 80 per cent loss is due to this scrip.

Bad news about Shree Ashtvinayak is that promoter holding is negligible at 1.35 per cent and public shareholding is at humongous 70 per cent. Firm hasn't paid dividend and book value is at 6.

On charts, the support is at Rs 2, Rs 2.4 and Rs 2.6. Scrip is trading very close to its support price and hence you can hold the scrip for some more time.

Next resistance is at Rs 4.68 and is very close to your buy price of Rs 4.85. You should exit the scrip when it reaches your buy price or at resistance levels, but do not average any further. You might see this level in next 3-6 months or so.


Image: Price movement of Shree Ashtavinayak Cine Vision from February 2012


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I have purchased 800 Shares of FCS Software Solutions, 400 shares of Austral Coke and 500 shares of Veer Energy & Infrastructure Stocks Past 1 Year. Can you help me? What is the future of these stocks? Will you suggest me to hold or sell?

FCS and Austral Coke are junk stocks. Junk stocks are characterised by low promoter holding (10 per cent in these two cases), no dividend and erratic revenues.

Veer Energy is speculative stock, and has already run-up six fold from lows of about 3 to 18 currently. Hence profit booking is advised and no additional investment is recommended.


Image: Price movement of FCS Software Solutions from February 2012


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