rediff.com

NewsApp (Free)

Read news as it happens
Download NewsApp

Available on  

Rediff News  All News 
Rediff.com  » Business » Markets volatile: Which stocks to buy, hold, sell?

Markets volatile: Which stocks to buy, hold, sell?

July 05, 2013 10:58 IST

BSE buildingThe Indian economy is in doldrums; rupee had touched an all-time low this week, and the stock markets have turned extremely volatile.

What should the investors do under the circumstances?

In an hour-long chat on rediff.com on Thursday, A K Prabhakar, senior VP and Head -- Equity Research (Retail), Anand Rathi Financial Services Ltd, discussed the best stocks to put the investors' money in.

Here is the transcript:

prakashk

please advice any long term midcap psu bank..60% return on 2 year

A K Prabhakar

Dena bank, Andhra bank and Vijaya bank probably meet your expectations.

jignesh patel

shree lakshmi energy and food can i buy for two years?

A K Prabhakar

Market cap of the company is 233crs with no great fundamentals, we would avoid.

mvshetty

IS IT GOOD TO BUY EIL AT CURRENT LEVEL

A K Prabhakar

EIL is a good stock but government disinvestment is a major worry. It is trading at attractive levels almost 7-8x and ROE at 38% and is debt free generate almost 530 crs of free cash next year. For longer term it is a good buy.

Anand JK

Isnt ITC undisputed best performer of Nifty 50 pack?

A K Prabhakar

Yes it is with annual sales growth of 16-19% in last 5 years and EBITDA margin of 35% and bottom lien growth of 24-25% it is been peforming consistently as it is not affectde by any excise duty hikes as it is able to pass on to teh consumers. We like the stock for longer term.

Anand JK

How about buying ITC,Pidilite,IndusInd,L&T Finance,Lupin,Castrol for long term?

A K Prabhakar

We like all teh stocks as you have selected the best in teh pack as they are good fundemantal stcoks with consistent performance over a period, cash cows, good ROE's and well known names in thier space.

Meherwan Mehta

What is the outlook on CIPLA ? Is there any significant upside in the current quarter ?

A K Prabhakar

CIPLA is more of a domestic play that is 45% revenue, which is getting hit by the domestic pricing policy compared to its peers and now it is diversifying. In long term it looks good but we would prefer Lupin, Sun pharma, Torrent Pharma for next 1 year.

Anand JK

Your views on JSPL around 180 levels?

A K Prabhakar

JSPL is still looking weak but downside seems to be limited. i will not advice fresh buying in JSPl but if you are holding then hold. in this space we like Hind Zinc, Hindalco.

jignesh patel

IS it good to buy kaveri seed and wim plast ltd at current price for two years?

A K Prabhakar

In this segment We like Bayer crop as it is consistent performer with good cash on books, and after teh land deal it is holding good cash. BV is 488. It is a german company with good parental back up and well known brands in teh segment.

GAUTAM NANDI

what is the probable range of ril in coming 3 years

A K Prabhakar

RIL has started to move now and in next 3 years we see it doubling from current levels as fundamnetals like the huge inevstment which it is planning in petrochem business aong with gas output and others egmenst like retail and telecom will also stat playing out.

suresh babu

give one or two good stocks

A K Prabhakar

We like Hevalls India, Bata India , Lupin and RIL.

Anand JK

How is MMTC at 60 levels?

A K Prabhakar

PSU companies where government is disinvesting is very volatile and therefore at current levels also i will not advice.

Anand JK

Does suzlon have any future? Its in single digit. Will it be another KFA?

A K Prabhakar

Suzlon please avoid as buying low price stock with no fundamentals and huge debt on books and long gestation projects which are again dependednt on teh government policies will fetch no retruns.

bhavin jain

Views on R Com

A K Prabhakar

Rcom technically looks good, fundamentally telecom is in competetion stage but recent news on repayment of debt will be beneficial for teh company.

antipakanticongress

Simple question for A K Prabhakar which is never replied by any expert, Whats your portfolio?

A K Prabhakar

Tata coffee, Yes bank, Bajaj Corp, MRF, LUPIN

prakashk

what is ur view on bhel..six month time ,,,,,,,,,

A K Prabhakar

BHEL would be teh first beneficiary of any recovery in teh economy and execution cycle. with good amount of order book but only due to teh slow execution cycle because of teh sector in dodldums is hitting teh company. So for fundamental basis 6 months is very small period to comment on as unless there is no chnage in policies and economy uptick

raj

Hi Sir,Thanks for sharing your mind.Pls share the prospects of POWER SECTOR ? Should we invest in power sector for long term, say 5 years, in Lanco at current valuation of around Rs 7/- Per Share

A K Prabhakar

Power sector for 5 years is a good time horizon. but apart from lanco we like NTPC and power grid.

anil Singh

sir what is your view on satyam

A K Prabhakar

Post merger we are very positive on tech mahindra and Satyam.

TEKRAJ DHARIWAL

HOW IS DENA BANK SHARE.. CAN IT BE PURCHASED

A K Prabhakar

The stock is trading below the BV that is PB of 0.4 and PE of less than 3x. PSU banks there are concerns of huge NPA but for long term investors PSU banking will benefit.

jignesh patel

what about sugar sector, is good to enter sugar company for three years?

A K Prabhakar

Sugar sector is very government regulated and with elections appraoching it is going to be volatile so we would suggest to avoid. But if you still insist then we would suggest EID parry and Andhra Sugar.