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The Indian economy is in doldrums; rupee had touched an all-time low, 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 Friday, 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:
Sir, can I buy Wockhhard at this level, (1056/-) and if I can, how long I should hold it
Ans: A K Prabhakar
Wockhard we are not comfortable with recent correction is almost more than 50% of its higest level whihc is very bad for the stock. So we would suggest to avoid teh stock.
pls advice idfc current level
Ans; A K Prabhakar
We are positive on teh stock and since it has good management and entity for banking license it is a trigger for the stock. Their NIM's have been above 4% for last 2-3 years
How much will sink nifty index ?
Ans: A K Prabhakar
Long term supportf or Nifty comes at 5500 till that doest breach there are chances that towards december market would make all time high.
(Q) H M
Sir, what about Suzlon Energy, good for long term?
Ans: A K Prabhakar
We would suggest to avoid high debt and debt restructuring stocks out of 10, 1 or 2 can be multi bagger but traditionally many of them have eroded wealth of teh investors.
(Q) prakashk
sesa goa current level is best for avg. invested at the level of 245
Ans: A K Prabhakar
if you want to hold the stock for 2-3 years then you can average otherwise you can just hold and donr make any fresh investments.
(Q) prakashk
pls advice one good stock of reality at current level for one year investment...
Ans: A K Prabhakar
We like Oberoi realty, Prestige, IBREAL form this space.
(Q) subhash maji
I have purchased bank of india earlier @294/200 share and today @265/400 share, need your suggestion
Ans: A K Prabhakar
Don average BOI as 10% fall is not big compared to market fall. PSU banks the asset quality and restructuring of assets is still a concern but once the ineterst cycle starts cooling down that should help teh stock.
(Q) mnj
can I buy SUBEX now?
Ans: A K Prabhakar
We would suggest to avoid the stock.
(Q) jignesh patel
what about sugar sector, is good to enter sugar company for three years?
Ans: 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.
(Q) TEKRAJ DHARIWAL
HOW IS DENA BANK SHARE.. CAN IT BE PURCHASED
Ans: 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.
(Q) Navin Shah
Which stock to buy for long term in pharma..??
Ans: A K Prabhakar
LUpin, IPCA, Torrent Pharma, Cadila and Dr reddy are good for long term.
(Q) anil Singh
sir what is your view on satyam
Ans: A K Prabhakar
Post merger we are very positive on tech mahindra and Satyam.
(Q) 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
Ans: A K Prabhakar
Power sector for 5 years is a good time horizon. but apart from lanco we like NTPC and power grid.
(Q) prakashk
what is ur view on bhel..six month time ,,,,,,,,,
Ans: 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.
Simple question for A K Prabhakar which is never replied by any expert, Whats your portfolio?
Ans: A K Prabhakar
Tata coffee, Yes bank, Bajaj Corp, MRF, LUPIN
(Q) bhavin jain
Views on R Com
Ans: 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.
(Q) Anand JK
Does suzlon have any future? Its in single digit. Will it be another KFA?
Ans: 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.
(Q) Anand JK
How is MMTC at 60 levels?
Ans: A K Prabhakar
PSU companies where government is disinvesting is very volatile and therefore at current levels also i will not advice.
(Q) suresh babu
give one or two good stocks
Ans: A K Prabhakar
We like Hevalls India, Bata India , Lupin and RIL.
(Q) GAUTAM NANDI
what is the probable range of ril in coming 3 years
Ans: 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.
(Q) jignesh patel
IS it good to buy kaveri seed and wim plast ltd at current price for two years?
Ans: 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.
(Q)Anand JK
Your views on JSPL around 180 levels?
Ans: 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.
(Q) Meherwan Mehta
What is the outlook on CIPLA ? Is there any significant upside in the current quarter ?
Ans: 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.
(Q) mvshetty
IS IT GOOD TO BUY EIL AT CURRENT LEVEL
Ans: 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.
(Q) Manish Singhal
what about opto circuits for long term?
Ans: A K Prabhakar
We avoid stocks which have corpoarte governance issue, there are better stocks available, M&M, ITC, LUPIN, MARUTI, L&T.
(Q) jignesh patel
shree lakshmi energy and food can i buy for two years?
Ans: A K Prabhakar
Market cap of the company is 233crs with no great fundamentals, we would avoid.
(Q) prakashk
please advice any long term midcap psu bank..60% return on 2 year
Ans: A K Prabhakar
Dena bank, Andhra bank and Vijaya bank probably meet your expectations.
(Q) prakashk
please advice any long term midcap psu bank..60% return on 2 year
Ans: A K Prabhakar
Dena bank, Andhra bank and Vijaya bank probably meet your expectations.
(Q) Anand JK
Shall I buy MMTC @ 50?
Ans: A K Prabhakar
MMTC is from metal space, this is very cyclical sector and with china growth slowing down which is a major consumption and also domestic demand subdued the companies may feel the heat. MMTC after the OFS offer has been falling continously due to its higher valuations. so we would suggest to avoid the stock.
I want to invest in Pharma stocks..kindly guide me some imp stocks for long term.
Ans: A K Prabhakar
In pharma we like Sun pharma, Lupin, Cadila
(Q) raj muni
please advise few midcap stocks for friday: buy/sell??regards,
Ans: A K Prabhakar
For short term Banking Stocks are looking good but for intraday it is difficult since market is very volatile.
(Q) manohar killedar
Tata Steel Ltd. Shall Buy
Ans: A K Prabhakar
Stocks has short term pressure as management has indicated that it will take 2 years for recovery. If you are a 3-4 years horizon invester you also look at SAIL, Tata steel and Hindalco inds.
(Q) appa
Dear sir, please tell us something about market now.
Ans: A K Prabhakar
Market is looking very good after making an inverse head and shoulder market has almost given a highest close in 35 trading days and now look for 6229 and 6357 for higher levels in coming days.