Did you make profits while the Sensex scaled dizzying heights last Friday? Are you confused about what to do now that the market is at an all-time high? How do you plan to consolidate your gains?
What should your investment strategy be now? Should you invest more in the market? Should you consider selling a few stocks? What would be the best stocks to buy, sell or hold at this juncture? Stock market expert Madhusudan Sarda answered many such queries during an hour-long chat on Tuesday. Here's the transcript:
Madhusudan N Sarda says, Dear Investor Friends, This is Madhususdan Sarda, Director, Mehta Equities. I welcome you all to the Investor Chat. Kindly note that we as a firm or our clients might hold positions in the stocks that we discuss. Investment or buy/sell positions should only be taken on sound analysis, judgment and advice from trustworthy market participants.
fsd asked, Your take on M&M, Tata Motors, Bajaj Auto?
Madhusudan N Sarda answers, at 2007-07-06 15:55:20 Four Wheeler stocks are looking better placed than two wheeler stocks in the Auto space. Other than that Bajaj Auto may yield substantial valuation by the 3rd quarter end due to the focused restructuring they are going through.
MS asked, when shud i enter banking stocks ? Please name your picks in this sector ..
Madhusudan N Sarda answers, Banking sector at current levels are looking good enough. UBI, OBC and Corporation Bank are the top picks in the PSU category.
MS asked, please suggest some good pharma stocks .. How is teh sector looking with a 1 year outlook ?
Madhusudan N Sarda answers, Indian Drugs sector fundamentals have improved and will continue to do so. Gelnmark, Nicholas Piramal and Wockhardt are attractive propostions for a 1 year horizon.
ABCD asked, How you see recently listed Meghmani Organics.
Madhusudan N Sarda answers, The valuations of the Issue was attractively priced when compared to its peers. Strong Growth prospects, international presence and large product line ensure further healthy growth in the topline.
qaisar asked, what do u think about "EVERONN SYSTEMS INDIA LTD "
Madhusudan N Sarda answers, At the price band of Rs. 125 - 140, the stock is available at 22.2x 24.9x its FY07 EPS of Rs.5.6. The stock looks attractive as compared to its peers, which trade at steep valuations. The company is likely to witness high growth rates in the coming years.
piya asked, what abt SBI Home Finance? What to do with shares?
Madhusudan N Sarda answers, once the AGM is concluded during the coming days, the situation would be more clear.
RVRajan asked, How about DLF at this level
Madhusudan N Sarda answers, Since DLF now is a very heavy stock it needs substantial money volumes to increase/ decrease its market prices substantially. It is definitely good for long term if the current plans are implemented efficeintly.
shankar asked, wt abt DLF
Madhusudan N Sarda answers, Since DLF now is a very heavy stock it needs substantial money volumes to increase/ decrease its market prices substantially. It is definitely good for long term if the current plans are implemented efficeintly.
xxxx asked, Sir , What should be the strategy for DLF & ICICI , I have allotment in IPO/FPO
Madhusudan N Sarda answers, Since DLF now is a very heavy stock it needs substantial money volumes to increase/ decrease its market prices substantially. It is definitely good for long term if the current plans are implemented efficeintly. ICICI looks good for medium to long term. It still is the top pick in the Private Banking sector.
rinku asked, Hi.. I m new to stock investments. how can i master stock investing ?
Madhusudan N Sarda answers, Good judgment will come with experience. Try to be a learner rather than mastering it.
qaqaqa asked, Which sectors will do good in comming days after 15K?
Madhusudan N Sarda answers, Telecom, Power and Four Wheeler stocks.
KPsingh asked, Sir, with the Sensex crossing the psychological 15,000-mark today, do you think it is the right time to enter the market? I am a small investor with limited funds and want to buy some stocks.. but some of my friends say that prices are too high and that market will fall again. I would rather go by your view than by that of well-meaning but less-informed friends. Please guide. Thank you.
Madhusudan N Sarda answers, Dont ever time the market. Always remember one always invests in companies, not the stock market. Follow a Top-down approach to identify companies with strong business potential available at an attractive price and enter the market irrespective of the level of Sensex.
brijmohan asked, is it the right time to invest in mutual funds?
Madhusudan N Sarda answers, Kindly asses the Fund House and the scheme category thoroughly before investing to get decent returns at any time.
rohit asked, do you think LNT is still a good hold for short term?
Madhusudan N Sarda answers, L&T has sound management and efficient business segments. Every positive news will trigger an upward movement in the price. However for short term it is not advisable to enter this scrip.
MS asked, hOW DOES THE TEXTILE SECTOR LOOK with a 1 year outlook ?
Madhusudan N Sarda answers, rise in the labour cost ,raw material and Forex Volatility will negatively impact the sector. Also Chinese Export will put pricing pressure. however the companies focused on value addtion would benefit in the long run
jayshree asked, acc to hold or sell
Madhusudan N Sarda answers, Stock seems to be highly volatile, some upside could be seen with result expected on 19th July
cshekhar asked, what is the futur of cairns india
Madhusudan N Sarda answers, stock was a under performer but with recent approval on gas pipe line from the govt might bring some upside to the scrip
ajayg asked, TechMahindra gave around 6%
rise today. Whatis ur take for next week?
Madhusudan N Sarda answers, IT Industry was on a momentum today. Tech Mahindra is one of the good buys in the IT sector due to its relatively lower dependence on dollar earnings and past order book.
ranb asked, ranbaxy
Madhusudan N Sarda answers, Ranbaxy trades at a hefty 24% premium to its peers on one year forward P/E (reflecting its interest burden). On an EV/EBITDA basis, Ranbaxy trades at a 3% premium to its peers while its 3-year PEG ratio of 1.2x is in line with its peer group. We are NEUTRAL on this counter.
MS asked, SHUD I BOOK PROFITS/LOSSES IN IT STOCKS ?
Madhusudan N Sarda answers, HOLD; till there are clear signals from the coming quarter results.
MS asked, is hdil GOOD ipo?
Madhusudan N Sarda answers, HDIL looks established and sustainable player in Real Estate. Its better placed than peers who just have plans.
sachin asked, i hold r.com what to do at current level
Madhusudan N Sarda answers, R Com has and will continue to surprise the markets on a positive note. the expansion into GSM space and the Tower business are the next big triggers.
rajan asked, infosys, known to surprise markets
Madhusudan N Sarda answers, Right. But one cant surprise the business realities in terms of Rupee appreciation and rising manpower costs.
SIVASHANKAR asked, Sir, As you know the Sensex market is going up and down daily, how can one make a decision to buy a stock of the companies listed in BSE, NSE? The stock prices of several good companies are high and how one should go about it?
Madhusudan N Sarda answers, Top to bottom analysis will definitely help you. Economy, Industry, Company and its valuations should be analyzed in the said sequence.
MS asked, hOW IS itc with a one year outlook ?
Madhusudan N Sarda answers, FMCG stocks can again be the flavor of the market in the coming times. ITC and HLL can again be the front runners amongst the other heavywieght blue chips.
samir asked, should i enter L&T at current level?
Madhusudan N Sarda answers, L&T looks attractive for medium to long term. Focused management and efficient businesses will definitely have a good impact on the market prices.
Saravana asked, how about Spice Telecommuniactions IPO?
Madhusudan N Sarda answers, thought EV per subscriber still can grow its growth rates are still very low as compared to peers. Acquisition talks can only SPICE up this stock.
kishan asked, Dear Sir, i want to know ipo list- who is comming soon
Madhusudan N Sarda answers, Check out the recent Business India magazine Cover story for the same.
mkgfd asked, ONGC ?
Madhusudan N Sarda answers, ONGC declared Q4FY07 net profit of INR 22.8 bn, down 43% Q-o-Q and 13% Y-o-Y; FY07 net profit increased by 8% to INR 156 bn. The recommendation remains BUY for decent returns.
ajayg asked, Tata Tea - do you see an upside from the current levels to 1000+ level in a months time?
Madhusudan N Sarda answers, Technically the stock can give a break out. However fundamental wise there are no triggers in the short term.
marcfaber asked, pls can u tell soamethin about dlf , should i hold or sell pls can u tell soamethin about dlf , should i hold or sell
Madhusudan N Sarda answers, DLF is purely a long term buy. This is definitely a huge returns stock within the real estate space. The substantial part of unlocking of value is yet in the pipeline.
sats asked, do you think its time to exit RIL?
Madhusudan N Sarda answers, Investor community has been always benefited by RIL in their portfolio and will continue to do so.
ssrr asked, sir, is sensex reaches 16000 this Year?
Madhusudan N Sarda answers, Quite likely. With huge economic growth and liquidity spurt. Good corporate earnings has to support it.
Aluwala asked, please comment on ACC and HDFC
Madhusudan N Sarda answers, HDFC is a focused service player in the banking space. HDFC is a good buy. ACC is highly volatile for the past few months. One can only take a long term view which seems to be better placed with Infrastructure boom still about to unfold.
RTK asked, WILL VISHAL RETAIL TOUCHES 1000 MARKS.?
Madhusudan N Sarda answers, Valuations and targets can only be determined after 2-3 quearters of listing.
ded asked, how much rediff pay you for these conversation?
Madhusudan N Sarda answers, some useful help to the investor community is my only fees.
qaisar asked, if you have to invest money, in which sector u would like to invest ?
Madhusudan N Sarda answers, telecom, power and four-wheeler.
zas asked, what do u think about "EVERONN SYSTEMS INDIA LTD "
Madhusudan N Sarda answers, Everonn systems is priced at a PE of 23 compared to the very high P/E's of Educomp and NIIT ltd. It can definitely be a multi bagger.
Madhusudan N Sarda says, Thank you my friends. We are ending the chat conversation at this point of time. Happy Investing !!
