Which is the best investment with moderate risk?
Is it risky to follow multi-bagger stocks?
Ajit Mishra, vice president, Research, Religare Broking answers your queries.
In an online chat with Rediff.com readers on February 5, Ajit Mishra, vice president, Research, Religare Broking, answered queries on how to invest in stocks.
He also answered if dividend distribution policy is negative or positive for stocks, whether one should buy into life insurers now, the midcap stocks that look attractive and why investors should avoid some stocks.
The unedited chat transcript:
Rajiv Rajput: Please tell whether to invest in Yes Bank or not? If yes is the current price is good or if No than when to invest?
Ajit Mishra: Please avoid Yes bank as fundamentals are weak.
Sanmeet Shah: Should one buy Non-Banking PSUs which good Dividend Yield stocks like ONGC are OIL India, HPCL, BPCL, and Coal India or are now the days of such stocks over in view of the Budget proposal of taxing dividends?
Ajit Mishra: The under mentioned high dividend yield stocks can be bought provided the fundamentals and growth prospects are good. The dividend distribution policy is likely to differ from company to company and hence we can't say the budget announcement is entirely negative.
Dinesh Ramegowda: Should I invest in HDFC bank?
Ajit Mishra: Yes you can invest in HDFC Bank with an investment horizon of more than a year.
Mayuresh Mirajkar: Hi which is best investment with moderate risk?
Ajit Mishra: You may invest in blue-chip companies like Infosys, HDFC Ltd. Colgate, Reliance industries and some of the midcaps like Inox leisure, Havel’s India and Voltas as margin of safety is higher in these stocks.
Gurucharan Singh: Hi Sir Should one invest in Yes Bank with a 5 year horizon?
Ajit Mishra: Investment in Yes bank should be avoided on the basis of poor fundamentals and volatility.
Surendran: Hero Motocorp and Vedanta...how are they?
Ajit Mishra: Both the stocks are good from long-term perspective. In short-term, stress in auto and metal sectors may impact the stocks.
Surendran: What ails Ballarpur Industries?? It is the foremost paper manufacturer in India then why is the stock performance poor? Same is the case with Sintex Industries and Sintex Plastics
Ajit Mishra: Ballarpur Industries is facing bankruptcy and has been taken to court by lenders. Similarly, both Sintex companies are facing corporate governance issues.
satish sharma: Sir, what are the prospects for Cochin Shipyard?
Ajit Mishra: Cochin Shipyard will do well if the economy rebounds; till then it is likely to remain under pressure.
satish sharma: Should I continue with Sadbhav Engineering?
Ajit Mishra: You may exit the stock
anil pai: In the current scenario is it risky to follow multi-bagger stocks?
Ajit Mishra: We would recommend that one should stay from penny stocks due to more volatility and uncertainty in the current scenario. There are good opportunities in the large cap and mid cap space too which can earn you healthy returns over a period of time.
anil pai: Sir what is your view on GRSE for long term investment?
Ajit Mishra: GRSE is a decent defence PSU stock for long-term, however it has doubled in the last one year and may witness a pause/correction at current levels.
pawan mohta: What are your views on HDFC & LG Balakrishna brothers with 1 year horizon?
Ajit Mishra: HDFC is good for 1 year horizon. However, LG balkrishna should be avoided.
MUkesh-cool: Which are best mid cap stocks to buy?
Ajit Mishra: You may invest in Inox Leisure, Voltas, Havells India, KEI industries, Gujarat Gas.
Surendran: Infosys, Wipro, Tech Mahindra or HCL Tech? Of these 4 which is the best investment?
Ajit Mishra: We are positive on Infosys and Tech Mahindra.
Ragha Vendra: Hi Sir Can Aavas financiers become one more bajaj finance? Is it good to enter at the current levels?
Ajit Mishra: It is a good stock, however, wait for correction to enter the stock.
Gautam Jain: Reliance home finance?
Ajit Mishra: Avoid this stock
Ragha Vendra: Hi Sir to make a good portfolio on stocks for a retail individual investor i am thinking to have 5 stocks maximum is it a good number?
Ajit Mishra: It also depends on the investment corpus. However, 5-10 stocks are good to begin with.
PRAKASH BHATT: Should i hold HPL Electric or exit?
Ajit Mishra: You may exit the stock
Gagan Hora: Please guide on short term & long term scenario for Coal India?
Ajit Mishra: The stock has good dividend yield, hence you may hold although stock returns may be limited. Also, it's looking weak on short-term chart. Though marginal bounce can't be ruled out at the current levels but overall trend is still sideways to bearish. Support is at 177 and resistance is at 185.
Suchit Bramhecha: Is it good time to enter insurance stock like sbilif, icicpru, hdfclife given recent correction?
Ajit Mishra: You may enter these stocks at current levels if the view is long-term. However, best is to invest in a phased manner as further correction may take place given the run-up in the last few months.
PRAKASH BHATT: You’re views on ABCL, Engineers India, Hindustan Cooper, Karnataka Bank, Infibeam, SBI, RIL, Yes Bank and Mahanagar Gas?
Ajit Mishra: We are positive on SBI, RIL, Mahanagar gas from long-term perspective.
If you want his advice on your mutual fund investments, please mail your questions to firstname.lastname@example.org with the subject line, 'Mutual Fund Query', along with your name and Ajit Mishra will offer his unbiased views.