SENSEX NIFTY
Mar 23, 2013, 03.13 PM IST | Source: Moneycontrol.com

KYI: Stocks to play in last trading week of FY13

Moneycontrol.com got Devang Mehta, vice president and head- equity sales, Anand Rathi Financial Services to answer all your stocks and market related queries sent to us by moneycontrol users on our Faceboook page as part of KYI (Know Your Investment).

KYI: Stocks to play in last trading week of FY13

The market ended in red on Friday with the Sensex down 57 points to close at 18735.60 and the Nifty down 7 points to close at 5651.  With that, the Sensex shed 835 points in the last six sessions. Also the mood in global markets became edgy after the developments in Cyprus earlier this week.

Moneycontrol.com got Devang Mehta, vice president and head- equity sales, Anand Rathi Financial Services to answer stocks queries sent to us by moneycontrol users on our Facebook page as part of KYI  ( Know Your Investment ).

He recommends buying Speciality Restaurants , private banks like ICICI , Karur Vysya Bank , IndusInd and PSU banks like PNB , Bank of Baroda .

Priya Pahuja: What is your call on Delta Corp ; buy, hold or sell?

Mehta: We do not cover Delta Corp, but other mid caps like Bajaj Corp , Pidilite Industries , Speciality Restaurants are good buys in the mid cap space

Utkarsh Baid: I have bought Nifty Futures at 5660 with stop loss 5617. Is that okay?

Mehta: I would not comment on short term technicals.

Nikhil Gupta: Should we still buy Bank Nifty given that it is breaking down a lot? What your view on Aurobindo Pharma ? It has been underperforming its peers recently.
 
Mehta: We like a number of stocks in Banking & NBFC space. For example, private banks like ICICI, Karur Vysya Bank, Indusind Bank and among the PSU Banks, we like PNB, BOB, Corporation Bank . In pharma we like Dr. Reddy’s Lab & IPCA .

Hemendra Pradhan: What is your call on HPCL ?

Mehta: We would feel more comfortable staying with the upstream companies like ONGC and Oil India .

Victor Preson: Will Nifty will reach 6500 by the end of this year?

Mehta: There is a possibility.

Hari Krishnan: What is your long-term view on Hindustan Zinc and BHEL ?

Mehta: We like Hind Zinc & BHEL for long term. On a valuation standpoint, both stocks seem under valued & will offer decent upside in the long term.

Chandrayee Sarkar: Is it right time to invest in L&T ?

Mehta: Yes, it is the right time to accumulate L&T. The stock trades at P/E and EV/EBIDTA of 15 times and 10 times discounting its FY14E numbers. To its credit, it has turned in a robust performance in the first 9 months of FY13 and is on track to meet its guidance on the revenue and order-booking fronts.

Hitesh Jain: I have bought Microtech at Rs 42 a share. Should I hold or sell?

Mehta: Do not track

Subhrakanti Shaikh: Is this right time to accumulate JP Associates ?

Mehta: Rather than JP Associate, we would prefer stocks like Cummins & L&T.

Pritish Pakhira: What's your view on Adani Enterprise & Adani Power ?

Mehta: We do not cover the stocks, some NBFC’s like REC, LIC Housing Finance , M&M Financial offer very good valuation support & substantial upside for long term.

Apoorv Mehta: What is your opinion about State Bank of India (SBI)?

Mehta: We prefer PNB in the large cap PSU Banking Space. PNB has traded at a 20% discount to SBI  in the past vs an attractive ~40% now, Just on an expected RoE improvement, valuations merit a re-rating vs 0.96x PABV currently (target 1.1x PABV), maintain BUY for ~20% upside

Jani Mayur: What is your view on SKS Microfinance ? Is it a buy?

Mehta: We do not track SKS Microfinance. We prefer companies like M&M Financial , REC .

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