So where is the stock market going? Will they rise further? Or will they crash again? What should a small investor do in such a scenario? Should he hold on to his stocks or sell them? Should he buy stocks now or stay away from the market?
In an hour-long chat, stock market expert replied to many such readers' queries. Here is the transcript:
Madhusudan Sarda says, Friends This is Madhusudan Sarda, Director Research, Mehta Equities Ltd. I welcome you all for an Investor chat hosted by Rediff. This Investor Chat is from 4 to 5 pm. Kindly note that due to the time constraints indicated by the Host, not all questions might be answered. For unanswered or further questions you might look forward for any upcoming Investor chat session. Also please note that we as a firm or our clients might hold positions or advice in the stocks that we discuss. Please take a Buy or Sell position only after analyzing at your end and taking professional advice.
Mukesh asked, What is the prospect of L&T Shares. What is long term nature (20-24 Months)for this.
Madhusudan Sarda answers, at 2007-07-31 16:01:55L&T has registered remarkable growth across segments The engineering and construction division, electrical and electronics division.The growth in these segments was primarily driven by the faster execution of projects; thecompany brought down the average execution time ofprojects from 28 months to 25 months. We believe goingforward L&T's growth momentum is likely to continue in thebackdrop of a robust order book position of Rs416 bn and afavorable macro environment i.e. infrastructure spending and capex across the various industries.THEREFORE long term propects looks good
naveen asked, should i enter tisco now? investment horizon 5 years
Madhusudan Sarda answers, Tata Steel is a good long bet. however companies decision to go for Additonal Debt could impact its earnings visibility in the short term.
Ram asked, what is the prediction for sensex in the next 6 months?
Madhusudan Sarda answers, No body can Predict the Sensex.What matters is at what level you enter the Scrip. therefore Plz be sure of Fundamentals of the co while entering the market.
swati asked, hello sir, pl. give ur opinion on niit tech. i hold@555.also when can i enter RIL and RCOM? thanx.
Madhusudan Sarda answers, Sentiments for the sector itself have been hurt, and even heavyweights they are going thru the pressure. Analysts' views that we may see the Rupee at a parity of about Rs.38 to the US $ by the end of this year, is also causing damage. Still, I would expect NIIT tech to outperform.
wer asked, I bought 60 shares of TCS. Losing big time. What to do?
Madhusudan Sarda answers, With the Indian Rupee strengthening, all IT sector companies are out of favour. You don't have to worry, these companies have enough strength to tackle this situation.
wer asked, Is it the right time to buy cement stocks?
Madhusudan Sarda answers, Cement Sector is the most volatile Sector as of now. there are many mid cap stock in this segment which can turn out to be multi bagger
venu asked, i own 2500 of Idea celluar shuld i sell/wait
Madhusudan Sarda answers, The company's IPO provided sufficient funding flexibility to pursue its growth plans. Idea's strong competitive position in its existing circles and comparable operational parameters provide us sufficient comfort in management's ability to execute its plans. Given the spectrum issues facing potential new entrants, Idea should remain relatively unconstrained for the next 12-18 months. In addition, we believe that Idea's GSM footprint in a spectrum-scarce market with 6-7 players offers M&A potential in the long run. From an industry perspective, we believe that low revenue yields and moderate EBITDA margins leave little room for disruptive pricing.
Kalyan asked, I want to know the future prospects of MIC
Madhusudan Sarda answers, The stock has given 100% returns or more on listing. Every stock when it IPO's there is huge volumes due to heavy trades, both individual investors (mostly selling), day traders and institutions buying/selling. MIC Electronics is a good stock and if you can hold it for long term (read 2 years or more) it will give good returns.
cvzx asked, I want to know the future prospects of DLF [200 @ 655], Parsvnath [300 @ 475], ICICI [200 @ 1005], Meghmani [350 @ 19], Spice Tele [1000 @ 59], Cinemax [55 @ 185], Tech Mahindra [100 @ 1985]
Madhusudan Sarda answers, DLF is the seventh largest company in terms of market capitalization and the highest market capitalization company in real estate sector in India. The current market price is still attractive in view of lower average cost for its land bank, PAN India presence, economies of scale due to large size of its projects, joint-venture with Fortis Healthcare for construction of hospitals, joint-venture with Oberoi Group of Hotels for construction of hotels, SEZ and Retail mall projects, maintenance contract of properties on 20%+cost
basis,etc . Investing in this stock for long-term to avail an opportunity to share the benefits of investing in India's largest real estate company.
Stocky asked, hi mr sarda, i hold 10000 shares of ifci, what level is it expected to go in short term?
Madhusudan Sarda answers, Government is not too keen to divest their stake at this juncture specially when IFCI is able to reduce its NPA level from whopping 18,000 crore to 200 crore last quarter. This might lead to heavy selling in this counter
paddy1 asked, Sir , what is the future prospects of RNRL
Madhusudan Sarda answers, RNRL has future business like Gas and gas distributions, which will be the next gen. business. So one can hold rnrl for better and safe gain.
VIKKI asked, SIR HW ABOUT PROSPECTS FOR DLF
Madhusudan Sarda answers, DLF is the seventh largest company in terms of market capitalization and the highest market capitalization company in real estate sector in India. The current market price is still attractive in view of lower average cost for its land bank, PAN India presence, economies of scale due to large size of its projects, joint-venture with Fortis Healthcare for construction of hospitals, joint-venture with Oberoi Group of Hotels for construction of hotels, SEZ and Retail mall projects, maintenance contract of properties on 20%+cost basis,etc . Investing in this stock for long-term to avail an opportunity to share the benefits of investing in India's largest real estate company.
VIJIIIA asked, HOW ABT SAIL. SUD I HOLD (OR)SELL
Madhusudan Sarda answers, SAIL has plans to invest Rs400bn over the next 4 years to nearly double its hot metal capacity to 25mt from current capacity of 14.6mtpa.SAIL plans to fund the capex of Rs400bn primarily through internal accruals and market borrowings. It plans to invest Rs250bn through internal accruals of Rs150bn and cash balance of Rs100bn and borrow the balance Rs150bn through market borrowings. The management does not have any plans to dilute equity to raise resources to meet its capital commitment over the next four years.therefore it is a good long term bet
paddy1 asked, Sir, should we buy BHEL and L&T at this level or wait for downside
Madhusudan Sarda answers, At the end of Q1 June 2007, Bhel had an outstanding order book position of around Rs 62,400 crore, due to the demand from the electricity generation sector, which is on an expansion mode. It is a Multibagger any time
sandykothari asked, how about buying RCOM Now
Madhusudan Sarda answers, At the current price, RCOM trades at discount of around 30% to Bharti's valuations. it should close the gap with Bharti on revenues, profits and ROCE. Stock performance would be driven by strong earnings growth
vineet asked, What are the prospect of OIL & GAS sector
Madhusudan Sarda answers, In June, international prices of crude oil rose to their highest levels since September 2006. Damage in Oman by a tropical cyclone. Total outstanding investments in the crude oil and natural gas industry witnessed a 32.4 per cent rise to Rs.67,188 crore as on 30 June 2007.
sandykothari asked, how about buying RCOM Now
Madhusudan Sarda answers, RCOM is planning a GSM overlay on its existing CDMA network; Most regulatory concerns appear behind, and news flow is likely to be positive. The company has yet to realize the benefits of full utilization of its network infrastructure (especially in broadband) Continued expansion of the wireless markets has shown higher operating leverage recently and has maintained return parameters despite lower revenue yields. All these points suggest that it will deliver better returns as compared to its peers...
amitk asked, Binani Cement for Short Term
Madhusudan Sarda answers, Binani Cement being a Nothern market Player is expected to show good retuns driven by the huge infrastructure developementin that region.
pet asked, Sir,What are the prospects of Dish Tv?
Madhusudan Sarda answers, Dish TV all set to wheel out DTH services in cars, trains The recent slide in stock price is being attributed to investors being a bit 'uneasy' about bad transmission signals on DTH service during monsoon. Investors believe people will move away from 'direct-tohome' technology because of 'frequent interruption' and 'unclear picture'. Dealers maintain that the market is tired of waiting for CAS notification. There is also talk in the market that Dish TV is giving a lot of promotional offers that can negatively impact its bottomline in the coming quarters
MS asked, BHEL
Madhusudan Sarda answers, At the end of Q1 June 2007, Bhel had an outstanding order book position of around Rs 62,400 crore, due to the demand from the electricity generation sector, which is on an expansion mode.
prashant asked, SIR HW ABOUT PROSPECTS FOR Reliance energy & other reliance companies??
Madhusudan Sarda answers, The Sasan project is expected to fuel Reliance energy's topline growth due to the higher volumes, in the longer term
Madhusudan Sarda says, Thank You Friends "Happy Investing"
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