Know Your Investment: Stocks that you can trade next week
Moneycontrol.com got Unicon Financial Intermediaries‘s Madhumita Ghosh to answer the stock queries readers sent us on our Facebook page as part of our KYI (Know Your Investment) initiative.
After a week of consolidation, the market ends at the high point of the day with Nifty ending a tad below 5900 levels on Friday. For the week, both frontline and the broader markets ended marginally in the positive territory.
Moneycontrol.com got Unicon Financial Intermediaries's Madhumita Ghosh to answer the stock queries readers sent us on our Facebook page as part of our KYI (Know Your Investment) initiative.
Check out her views below:
Dinesh Choudhary: Can you suggest five stocks for five-year horizon?
Kushal Thakkar: Which are your top picks for the short-term?
Nikhil Gupta: What are your views on NTPC and Larsen and Toubro for this month?
Ghosh: NTPC is next on the government's divestment agenda. The issue is likely to hit the market around January 15, 2013. The Government proposes to divest 9.5 percent stake in NTPC via Offer for Sale (auction) route. NTPC posted excellent set of numbers in Q2FY13 surpassing consensus estimates for the quarter. Despite being a seasonally weak quarter when the company resorted to plant shutdowns the company managed to post excellent growth in profitability driven primarily by lower fuel expenses and few one off income. One could buy now and at every decline as it is near 52 week low. The issues with coal India seems to be getting sorted out and they are expected to sign the fuel supply pacts and we expect the stock to move up this month.
Larsen & Toubro is a fundamentally sound company. The Q2 results were better than expectations. Recently the company won orders worth Rs 1200 crore in various sectors like solar power, EPC etc. Technically, it has crossed the 30-day and 50-day moving average and thus expected to move up with the market. In the short term, it can move past the 52-week high of Rs 1720.
Narendra Ahmedabad: Is HDFC a 'buy' now?
Ghosh: Yes, one can buy HDFC now for medium to long-term as the demand is expected to move up further with peaking out of interest rate.
Oruganti Sudhakar: I have 135 shares of Bharat Heavy Electricals (BHEL) at Rs 361. What should to do?
Ghosh: To reach the price of Rs 135, it will take long as the fundamentals are not much in favour. Order book is also not that buoyant. So hold for temporary upside till Rs 260 levels and switch thereafter to Cummins or any other fundamentally strong stock.
Nikhil Gupta: What is your view on Power Grid Corporation of India?
Ghosh: Power Grid is fundamentally good stock but will be a slow mover in a bull market as its beta is low.
Kashish Kumar: I have 100 shares of Steel Authority of India (SAIL) at Rs 95. What would be your advice now?
Ghosh: Metals are looking good for medium to long-term but SAIL compared to other stocks looks weak. Fundamentals are also not strong. Inventory pile up and timely commission of new projects are a concern. One can exit and switch to Hindalco or Hindustan Zinc even Sesa Goa (for high risk investors).
Manish Bobade: What is your call on Sesa Goa?
Ghosh: At this point of time the future is uncertain with the Goa government and Karnataka govt putting a ban on mining companies.. Supreme court panel recommended scrapping 42 iron ore mining leases in Goa until mining companies submit plans to deal with the environmental impact and the legal details involved Even when it is resumed it would be opening with a cap..It is better to be away from the stock until visibility comes.
Muthusamy Thangavel: Can you recommend three multibaggers?
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Sagar Batra: What are views on Housing Development and Infrastructure (HDIL)?
Ghosh: HDIL s results were pretty encouraging. With sentiment towards the sector improving and Bombay continues to witness buoyancy in real estate prices HDIL continues to be a favourite pick in the space. Target price for a year could be Rs 150.
Partha Majumder: Can I buy Hexaware Technologies at current level?
Ghosh: The price has reacted downward due to the revision of revenue guidance for December.
The company now expects revenue for the December quarter at USD 92 million, down from an earlier guidance of USD 94.7 million-USD 96.5 million. Hexaware also expects EBITDA margins to be impacted by 500-700 bps on a/c of the revenue losses. Company expects to recoup them from Q1CY13 onwards
One can start accumulating at every decline as other fundamentals remain intact and valuations become compelling. One can get a 15 to 20% upside.
Kasi Komma: Where are GVK Power & Infrastructure and 3i Infotech headed?
Ghosh: GVK Power looks to be a good long-term bet.