May 02, 2013, 06.35 PM | Source: CNBC-TV18
Phani Sekhar, Fund Manager of Angel Broking advised booking profits in GSK Consumer and buying large private sector banks.
P Phani Sekhar (more)
, Karvy Stock Broking | Capital Expertise: Equity - Fundamental
Sekhar told CNBC-TV18, “My advice would be to book profits in GSK Consumer. At Rs 4100, the stock is trading at around 40 times. Apart from the current flavour of the market which is more towards FMCG fundamentally there is nothing which can go right for a stock for a longer period of time. One or two bad quarters in terms of volume growth below market expectations and the stock can easily give away 10 to 12 percent.”
“So these are the risk which the investor must understand and if the investor has a long-term horizon then it will be a good idea for him to book profits out of GSK Consumer. The stock anyway has passed its business cycle peak and is fast approaching its valuation peak. Try and look at some of the larger private sector banks which happen to be relentless compounding machine, compounding money at 18 to 20 percent - whenever the market gives the investors the opportunities over the next three to six months,” Sekhar added.