Watch the interview of Rajesh Agarwal, Director - Research of Eastern Financiers Ltd who shared his readings and outlook on specific stocks and sector & Gajendra Kothari, CFA, MD & CEO of Etica Wealth Management Pvt Ltd answered few personal finance queries.
Below is the verbatim transcript of Rajesh Agarwal's interview with CNBC-TV18:
Mastek
Since the restructuring has been announced in Mastek where they are going to demerge their insurance business and list that into domestic market and subsidiary of that insurance business is going to be listed in overseas market also. The stock has seen quite a good run up but still it is trading at a discount to its peer group stocks and there is enough room for the stock going up. One couldn’t continue holding with the stock unless one is in requirement of cash the target being Rs 450 in next six months. So I would say, stay put with the stock, IT services businesses are going to do well. The new investors can go ahead and buy in correction at around Rs 350-355 levels.
Ashok Leyland
Although Ashok Leyland has done very well not only on marketcap parameters but also operationally, the numbers have seen a turnaround quarter-on-quarter, sales have gone up, even international business in Bangladesh and Sri Lanka is doing well. Going forward also, with hopes of interest rate cuts and economy reviving, we think that the heavy commercial vehicles business should do well. Even at this point of time, the medium-term business has seen a mark up but still for new investments, I will not recommend Ashok Leyland. For existing investor one can continue holding with a price target of maybe Rs 55-56 but for new investor who is willing to put new money into auto pack, Tata Motors or Bajaj Auto would be a better pick.
Torrent Power
In Torrent Power one may stay for some more time, maybe in the next six months or so you will get a price target of around Rs 200-210. This company supplies power to Ahmedabad, Gujarat and Gandhinagar. The numbers have been pretty decent and going forward also I think after that gas pooling issue being resolved in the near future, things are going to improve but still Rs 210 would be the prudent target to get out of this stock.
PC Jeweller
In the next three months, one can expect a target of Rs 225-230 in PC Jeweller because the numbers have not been quite exciting. Last quarter numbers were pretty muted because of higher expenses and higher tax incidents. The domestic market although doing well, exports have not done anything and even on the brand side, I would prefer being with brand leaders like Titan or a Gitanjali Gems rather than being with PC Jewellers. So if somebody wants to be in this sector, Titan would be the best pick.
Intellect Design Arena
One should wait for the numbers to come out for the next quarter or so because although the company is doing well, it has demerged from Polaris, it is doing well but still for standalone numbers to come out would be a prudential time to take a decision on investment call but at this point of time, one should hold on maybe 10 percent from the current market price is quite possible in next week or so. So stay put with that, book your profit, get out of after 10-15 percent jump and wait for next quarter numbers to come out.
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