Angel Broking's take on SAIL, SBI, Mphasis, Coal India

Phani Sekhar, Fund Manager of Angel Broking, in an interview with CNBC-TV18's Sonia Shenoy and Anuj Singhal, gave his outlook on the performance of a couple of stock and how they are expected to do going forward.

Below is a verbatim transcript of the interview. Also watch the accompanying video. Q: If an investor has 1000 shares of SAIL at Rs 182. Should one hold them or sell and add some more shares to it?
A: The earnings are expected to be under pressure at least for the next two quarters because SAIL is facing headwinds on all possible fronts. On one hand, there is sluggish demand and on the other the realisations are flat to negative.
Coking coal prices are not yet cooling off. The only respite for SAIL, as compared to other steel companies, is iron ore. A large part of it is captive, but coking coal is making life difficult for SAIL.
The SAIL results are symptomatic of what is to be expected at least for the next two quarters. On a year-on-year, we can see at least 10-12% kind of declines.
SAIL was a FY13 story because the capacity is almost doubling in the next 18 to 24 months. We might expect some delays because a large part of it was to come at the end of FY12.
In FY13, we will see a large part of the capacity addition coming in. The market will start taking cognizance starting in October. This would be the time when some of the headwinds for SAIL should recede.
Considering that the demand outlook is not so great, there are pressures on some operating front. There are concerns on what will be the pricing for FPO.
The investor should wait for prices of around Rs 120-125 and there he/she can average some more to bring his average price down to Rs 150-155 levels. If he/she waits for one or one-and-a-half year, then he/she can make some handsome returns. Q: It is suitable to buy SBI shares at current prices?
A: SBI