KYI: Expert stock tips to make best of market rally

But how long will this buoyancy last? And are you well positioned to make the best of these gains and secure yourself against any possible future falls?

Moneycontrol.com got Amit Trivedi of KRChoksey Shares and Securities to answer the queries you voiced on our Facebook page.

Below are his answers for your questions.

Kumar Shantanu: Where do you see expiry for the current series?

A: Between 5450-5300.

Chiranjiv Mehta: Is it the right time to buy State Bank of India (SBI)?

A: If view is for long term, then yes one can start accumulation. SBI has delivered mixed operating performance during the quarter. Sharp deterioration in asset quality and steep contraction in margins were key disappointments from the numbers. We expect SBI to deliver 18.8% CAGR in net earnings over FY12-FY14 driven by steady NIMs, industry line loan growth and improving operating efficiency.

The recent sharp fall in stock price provides attractive investment opportunity to accumulate the stock for long term vision. Once the company will come out of few serious issues pertaining to its deterioration in asset quality and steep contraction in margins, we believe it will generate decent return to the investors. Therefore, we advise to buy the stock for long term prospect.

Krishna Prasad: What is the right entry price for Tata Motors , Tata Steel , Tata Power and Mahindra and Mahindra ?

A: Accumulate Tata Motors around Rs 220-215, TISCO around 390 and Tata Power around Rs 96.5. Wait for a significant correction in M&M.

Tata Steel is currently undergoing a tough environment on the back of sluggish performance of its European operation due to lack of industrial activities on infra and construction spending. We believe the company will face more headwinds for next 1-2 quarters. In our view, the stock can be bought at every dip below 390 levels as the long term growth story is still intact with strong fundamentals.

Vipul Jain: What is your view on ADAG stocks?

A: Reliance Infrastructure ’s performance mainly depends upon projects of Reliance Power, and these projects are facing hurdles at this time. Considering today’s coal scam news and the involvement of Reliance Power in the same, it is better to wait and watch.

We recommend a ‘hold’ on Reliance Infrastructure, because we see no significant reversal yet.

Siddhartha Umesh Shah: What is your four-five year view on Bharti Airtel , Crompton Greaves and IRB Infra ?

A: IRB infra is a leading player in the surface transportation industry. It is expected to produce Rs 1500 crore of operating cashflows yearly. We have a ‘buy’ on IRB and advise accumulation Crompton.

Meanwhile, Bharti has seen a sharp correction post its Q1FY13 results. On a longer term horizon of 4-5 years, we see consolidation in telecom wireless segment. Bharti is better placed as compared to its peers as it is the market leader in India and its Africa business is showing steady improvement in margin. Since most of the capex is behind, we believe free cashflows will help ease out pressure on balance sheet. We maintain our ‘buy’ recommendation on the stock.