KYI: Sunil Jain's stock advice to help you invest wisely

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

This week, Sunil Jain, vice president-equity research at Nirmal Bang, gives his outlook on the various stocks that you wanted to know about.

Below are the questions you asked us on our Facebook page:

Rajanikanth Bejinavemula: Can I buy Kingfisher Airlines at current price for 1 year?

Jain: I feel you should not buy Kingfisher Airline share in the current scenario. The company has very high debt and is also incurring losses.

Animesh Rabha: What is the target for Chambal Fertilisers till end of this month?

Jain: There are only two days of trading left in this month, the stock can come down to Rs 94 in these two days.

Raghavender: Should I buy Gujarat NRE at current price? What is the target and the near-term prospect?

Jain: Technically, you can buy the stock at current price of Rs 27.35 with stop loss of Rs 25.5 and target of Rs 30.

Kamlesh Mandriya: What is the future of Lanco Infra? I bought this stock at Rs 18. Should I hold or sell it? If I want to sell, what should be the levels?

Jain: Lanco Infra is an infrastructure company and just like other infrastructure companies, Lanco is also facing shortage of fuel for its power plants and has high interest burden. Apart from this, it is also facing a case at the Australian court. I feel you should sell this stock on a bounce back. 

M Vijaya Sai: I find both, public sector banks including market leaders like SBI, PNB, Oriental Bank, and finance players (investments other than Gold) dipping downward with high volatility. Will it be the right decision to buy banking shares at this level or should I wait for them to become cheaper than the current market price?

Jain: It is very difficult to catch the bottom. With every decline, valuations of these banks are getting attractive. There are some near-term concerns like lower growth and possibility of increase in NPAs (non-performing assets), but that is getting reflected in price. If you have over one year's view, then, instead of buying at one time, you can distribute your buying in three-four parts, and buy on declines.

Abha Mahapatra: I bought 10 shares of Hero Honda at Rs 1,895. Should I hold or sell? Also, I have lost Rs 8000 on SBI (bought at Rs 2,299). What should be my strategy now?

Jain: At current price, valuations are fully priced-in and you can book profit. For SBI, if you have over one year's view, then hold on, you may get your purchase price.

Harshad Deshpande: Which bank stocks can be bought with five years' investment perspective?

Jain: You can buy HDFC Bank and ING Vysya Bank with five years' investment perspective.

Navdeep Singh: What is the long-term view on Edserv Softsystem?

Jain: You should avoid this stock.

Ramesh Sabbani: What is the target for TCS in the next 12-24 months?

Jain: TCS can give 15-20% upside in 12 months from the current level.

Manish Kothari: What would be the best level to buy Educomp?

Jain: The way Educomp is falling, it is better to avoid it now. Let it stabilise and let the trend change. Better to avoid catching a falling knife.

Kalpesh Patel: What is your view on Mphasis, Delta Corp?

Jain: Mphasis is a subsidiary of Hewlett Packard and is into software services. The company faced pricing pressure in recent past and their performance has declined. At the current price, the stock is fully priced and can be sold.

Delta Corp is into gaming and real estate business. It has got premium valuations due to the uniqueness of its business. But, in a declining market, it is better to avoid these stocks as premium commanded in a bull market gets vanquished in a bear market.

Wrinku Thakur: What are your views on Tata Steel, L&T, Maruti, Unitech, ITC, RIL and SBI? Should I have positions in them and at what level do you recommend to buy?

Jain: Apart from Unitech, all other stocks are blue-chip stocks of the Indian equity market. If the market goes up in the future, then all of them will go up. The question is when you can buy? We don