Mkt will be trading sideways: KR Choksey Securities

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Mkt will be trading sideways: KR Choksey Securities

Jigar Shah of KR Choksey Securities says though the ramp up seen in the last two days is sort of difficult to believe, it is definitely welcome. "I think that gives a lot of lessons to be learned in terms of what kind of patience and temperament one must have in order to be successful in this market as a long-term investor," he says.

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Jigar Shah of KR Choksey Securities says though the ramp up seen in the last two days is sort of difficult to believe, it is definitely welcome. "I think that gives a lot of lessons to be learned in terms of what kind of patience and temperament one must have in order to be successful in this market as a long-term investor," he says.

But Shah cautions that one should see gains from a six-month timeframe and not look at immediate gains. "I would say the market will be trading sideways, but in the long run, it is quite positive," he says. 

Excerpts from CNBC - TV18's exclusive interview with Jigar Shah:

Q: Is there a certain amount of disbelief or do you have faith in the kind of ramp up that we have seen, plus 1000 points in two days?

A: Yes, there is a bit of disbelief. But certainly, the kind of sharp fall we witnessed, I think this is a welcome situation. The speed of rise and fall is leaving a lot of investors gasping. 

I think that gives a lot of lessons to be learned in terms of what kind of patience and temperament one must have in order to be successful in this market as a long-term investor.

Q: Do you think there is some amount of stability in the market? Would you start parking your funds into the stocks you like at these levels?

A: On a selective basis, both in large cap and in midcaps, there are good opportunities. I think investors should certainly invest at such attractive levels in these stocks for a horizon of one - two years.

Q: What are your thoughts on Balrampur Chini Mills ?

A: Our projected estimate on earnings is more than Rs 11. The company has a very decent level of closing stock of sugar at a lower price.

The company is in the middle of a significant expansion activity, with new capacities starting in the second half of the financial year. Apart from that, the sugar company has built a very robust model, where it is earning a decent amount of money from non - sugar activities, such as power as well as industrial alcohol. 

I think given the track record and the price erosion that the stock has seen, at single digit PE, the company's outlook is very positive.  At least 30 - 40% appreciation from these levels is very easily achievable during this calendar year itself.

Q: What would be your recommendation and what is the price target you are looking for Asahi India Glass ?

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