KYI: Stock advice to guide you through turbulent times

Moneycontrol.com initiative, Know Your Investment, helps investors to take a prudent call on their investments.

This week, Aditya Damani, head of research, MLR Securities, gave his outlook on various stocks that you wanted to know about. Below are the questions you asked us on our Facebook page : Alpesh Popat: What are your views on Crompton Greaves from here on? Is there more downside? Damani: From a long-term perspective, the stock looks unattractive. The business is struggling on the revenue and margin fronts. On a short-term basis, it might find support, but upside will be capped around Rs 180. Manoj Hirway: Does BHEL looks undervalued due to its FPO? Is it a good buy? Damani: BHEL is looking undervalued at current levels, if you have a multi-year horizon. But there will be pressure on the stock until the rate of execution of power projects picks up. It might be a good idea to systematically buy this stock on dips. Rushin Mehta: I've bought JSW shares at Rs 1,075; now it is at Rs 820. When is the good time to sell? Damani: The bad news will weigh on the stock.  You can exit the stock on any rally above Rs 850.   Shramnesh Jain: What is your outlook on Delta Corp? Damani: The charts indicate that Delta Corp is facing resistance above Rs 110.  It should consolidate around these levels for some time before giving a clear direction.  The stock needs key triggers for a big rally. Sumit Agrawal: What do you think of L&T Finance IPO? How do you see it listing? Is it a stock to invest in? Damani: The L&T Finance IPO is fairly priced.  I see a small listing gain on the IPO.  The stock looks good to invest in the long-term because of the L&T management and brand value.  Vishal Singh: What is your outlook on Eros and Idea? I've bought shares of both these companies and have gained some profit. I want to know whether it is worth keeping for few more months? Damani: If you are trading in these stocks, it is prudent to book some profit at this point.  You could sell half now and the rest later.  I would advise to keep a trailing stop loss. Aman Natani: How much more will PFC fall? Damani: I can't predict short-term swings in the market. PFC is approaching key support levels at Rs 170.  It is also attractive on a valuation basis.  The Government needs to pass State Electricity Board reforms to clear business uncertainty faced by PFC. Arbaaz Khan: What is the advice and one-year target for Bartronics India, Lakshmi Energy and Foods? Damani: I would advise to avoid these stocks and go for higher quality companies.  Bartronics could go to Rs 80 in the next year.  No view on Lakshmi Energy. Amit Kumar Jain: What is your call on Chambal Fertlisers? Damani: Chambal will stay in a range, unless the government liberalises urea pricing.  You can trade in a range of Rs 70-100. Mohit Matani: I've bought BGR Energy 50 shares at Rs 510 and IDBI 200 shares at Rs 149. What should my strategy be ahead? Damani: I would recommend selling BGR Energy on rallies or you could buy BHEL instead of BGR Energy, if you are holding for long-term. I think you can hold IDBI. Kapil Dudeja: Is it good time to enter in Adani Power or Adani Enterprise for four-five months period? Damani: I think it is best to avoid these stocks as they are not cheap and have just been hit by bad news.