KYI: It's pouring hikes; here's what will sail you through

Amidst the rising charts all around, Manoj Sachdeva, head of research at Hem Securities shares his expert call on various stocks queries posted through Moneycontrol.com's initiative 'Know Your Investment' (KYI).

Below is the expert advice to all the questions you asked us on our  Facebook page :

Sanjeev Kumar: What should one do with SBI ?

Sachdeva:  SBI has posted in better than expected results in Q1 of FY12 with the NII at Rs.97 bn, along with a healthy loan growth of 18.7% YoY. Going forward, the bank is expected to register growth of more than 40%.Hence one should hold SBI for the price target of Rs 2080 with stop loss of 1826.

Aniruddha Kinjawadekar: After RBI’s latest rate hike, what do you think is the future for Axis Bank ?

Sachdeva: Axis bank's net profit for the quarter ended June 30, 2011 has increased by 27.02% at Rs 942.35 crore as compared to Rs 741.88 crore for the quarter ended June 30, 2010. The total income registered a growth of 39.82% to Rs 6049.27 crore for the quarter under review from Rs 4326.37 crore for the corresponding quarter of the previous year. Although RBI has hiked the repo rate by 25 bps to 8.25% but technically, stock is in uptrend. Short term moving averages are giving upward breakout at current level of Rs 1135. At present level, one should hold the stock with stop loss of 1030 for target price of Rs 1230/1270 in short term. For long term one can hold the stock for Rs 1400.

Vishal Thakkar: What is the trend for BHEL in near term?
 
Sachdeva: Technically, BHEL is consolidating between Rs 1,635 to Rs 1,794 level since last six weeks. On weekly charts also the stock is trapped in Inside bar formation. Hence, at present BHEL is in sideways trend and if stock breaks Rs 1,794 level on upside, only then we can see stock moving up to 1,930 levels. Hence, one should wait in the stock with the strict stop loss of Rs 1,635.

Mahesh Sakhare: Do you think Tata Motors will cross Rs 500?

Sachdeva: Tata Motors' global sales surged 3% to 87,459 units in August, compared to the same month a year ago. Sales of luxury brands from Jaguar Land Rover were rose 31% at 21,242 vehicles in August 2011. The Tata Motors Group's global sales comprise Tata, Tata Daewoo and Hispano Carrocera range of commercial vehicles, Tata passenger vehicles, along with the distributed brands in India: Jaguar and Land Rover. Technically, long term moving average is giving upward crossover on the counter. If the stock sustains above 159 levels then it may rise up to level of 190 in the next three to four months.

Jasmeet Singh: I have 50 Talwalkars stocks at Rs 240 with an investment perspective of two years. Is it the right time to buy more?

Sachdeva: Talwalkars is the country's largest chain of health clubs. It has opened its six new health clubs in the city of Faridabad, Jaipur, Lucknow and Pune. Recently, Talwalkars had forayed into franchises business as well. By the end of this year, the company plans to open 50 gyms and 300 in the next three years across India. However at present, the stock is in a downward trend and if it breaks 175, then it may fall down to 130 levels. One should refrain from buying at the present level.

Subhiksha Prabhu: Why is a good share like Opto Circuits going down?

Sachdeva: The company’s secured loan has shown significant rise of more than 200% on consolidated basis in FY11 as compare to FY10. Also, the company is trading at price to book value multiple of more than three which is quite high. The stock is presently in a downward trend and can fall down to level of Rs 180.

Raghvendra Porwal: I have a three to five year view for NHPC and SJVNL. I hold 1500 shares in each of them at an average price of Rs 30 and Rs 25, respectively. What is the road ahead?

Sachdeva: In India, the hydel power plants reported a strong 31.2% rise (YoY) in generation. On a sequential basis too, the hydel generation was higher by around 19%. Good rainfall during June and July pushed the hydel power output upwards and makes companies in this segment an attractive destination to deploy the funds in. Hence, one should hold NHPC and SJVNL for price target of Rs 60 and Rs 45, respectively for 3-5 years perspective. One can average both the stocks at present level.