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The 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:
please advice any long term midcap psu bank..60% return on 2 year
Dena bank, Andhra bank and Vijaya bank probably meet your expectations.
shree lakshmi energy and food can i buy for two years?
Market cap of the company is 233crs with no great fundamentals, we would avoid.
IS IT GOOD TO BUY EIL AT CURRENT LEVEL
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.
Isnt ITC undisputed best performer of Nifty 50 pack?
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.
How about buying ITC,Pidilite,IndusInd,L&T Finance,Lupin,Castrol for long term?
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.
What is the outlook on CIPLA ? Is there any significant upside in the current quarter ?
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.
Your views on JSPL around 180 levels?
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.
IS it good to buy kaveri seed and wim plast ltd at current price for two years?
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.
what is the probable range of ril in coming 3 years
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.
give one or two good stocks
We like Hevalls India, Bata India , Lupin and RIL.
How is MMTC at 60 levels?
PSU companies where government is disinvesting is very volatile and therefore at current levels also i will not advice.
Does suzlon have any future? Its in single digit. Will it be another KFA?
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.
Views on R Com
Rcom technically looks good, fundamentally telecom is in competetion stage but recent news on repayment of debt will be beneficial for teh company.
Simple question for A K Prabhakar which is never replied by any expert, Whats your portfolio?
Tata coffee, Yes bank, Bajaj Corp, MRF, LUPIN
what is ur view on bhel..six month time ,,,,,,,,,
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
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
Power sector for 5 years is a good time horizon. but apart from lanco we like NTPC and power grid.
sir what is your view on satyam
Post merger we are very positive on tech mahindra and Satyam.
HOW IS DENA BANK SHARE.. CAN IT BE PURCHASED
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.
what about sugar sector, is good to enter sugar company for three years?
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.