Know Your Investment: Solution to your stock queries

This weeks moneycontrol.com's initiative, 'Know Your Investment' with Sunil Jain, VP- equity research, Nirmal Bang Equities, brings you answers to the queries you asked us on our Facebook page last week.

Analysing the market for next week, he says it will be driven by the expectations surrounding the credit policy and events in the international market mainly Europe.

"We feel the RBI is likely to cut interest rates in its policy meeting and the recent spike in Spain and Italy’s government bond yields will also cool off." He see the market remaining positive next week.

Infosys' Q4 numbers saw the stock witness a major fall after the below than expected results and guidance. At current price of Rs 2,400 the stock is trading at 14.5 time FY13 EPS, looking at 10% growth the stock is trading at fair price right now, he adds.

Jain says the stock can be purchased on decline to around Rs 2,300.

Taher Sadriwala: Would appreciate your views on Titan Industries, Tata Power and HUL? I am already invested in them for a period of 6-9 months. I want to know the outlook for the next 6-9 months on each of these?

Jain: Partially book profits in Titan Industries, Sell Tata Power around Rs.115 and Hold HUL

Gaurav Grover: Should I start buying IGL in SIP for long-term?

Jain: No. I feel the recent order of PNGRB, if sustained, will change the structural model of business for IGL. Its Return of equity will come down from around 25% to 7-8% which is not good for long term investment.

Kamal Jain: What is the view abt Navneet Publication for long-term?

Jain: Navneet Publication had grown at 16% CAGR in last 5 year and similar growth can also be achieved in next 2-3 year. The stock is trading around 13.25 times one year forward earning which looks reasonable. The stock can be purchased on decline with reasonable return expectation.

Harveen Sandhu: What is the future of Unitech and Suzlon? Should I hold or sell?

Jain: From short-term perspective both the stocks are likely to underperform and can be sold at current price.

Alap Shah: What is the outllook on A2Z Maintainance & Engg services?

Jain: In the short term the stock is likely to underperform till their waste management business scales up and start contributing substantially to revenue.

Ashish Chhabria: MCX and United Phos, are they a 'buy' in current market? What should be the target with a horizon of 2 years?

Jain: Yes, MCX can be purchased at current price, the stock can give 15-17% annualized return and instead of United Phosphorus I will prefer Rallis India which can give over 20-25% annual return in next two year.

Manish Solanki: What is your top stock picks currently?

Jain: Alembic Pharma

Pragnesh Shah: JSW Steel or Coal India, which one is good for short-term?

Jain: JSW Steel can be purchased with stop loss of Rs.715 and target of Rs.770

Dinny Bedi: I am holding one lot of Tata Global April series. Shall I carry forward and for what target?

Jain: Yes, with a target of 126 and 134.

Singh Baljeet: What is your outlook on the banking space? Is J&K Bank a buy right now?

Jain: I feel in banking space one should be stock specific. I like ICICI Bank, DCB, ING Vysya Bank and Dena Bank.

Shramnesh Jain: What is your view on JP Associates and South Indian Bank with a one year perspective?

Jain: Both look positive

Hayat Syed: Is it worth investing in Gujarat NRE Coke and Rajshree Sugar right now?

Jain: Coke prices are coming down which is not good for Gujarat NRE Coke and can be avoided. Instead of Rajshree Sugar I will prefer Balrampur Chini.