Hold or Sell: How to play your favourite stocks

On fundamentals, Cipla has done its fair bit from an FY16 perspective. Even the kind of positive news that we have seen on the stock very recently with relating to its inhaler business, that augurs well for the stock but in terms of numbers; it has done its fair bit. We had an accumulative rating but it has exceeded a target price. So I think we will have a hold rating on the stock at the current levels.

Bhushan Steel

Looking at the kind of cloud that Bhushan Steel has got under in terms of corporate governance, the scams that it has got embroiled into the kind of debt that the Syndicate is working out with the kind of revamp of the management team, those are some of the indicators that the stock will look up to.

From a short to medium term perspective you might see a bounce back in the stock which might be used as rallies to get out of the stock and get into some other qualitative names, preferably in the private banking space or the infrastructure space.

HUL & Lupin

Good set of numbers posted by Hindustan Unilever (HUL) and Lupin, volume growth of about 6 percent for HUL and Lupin posted a decent set of numbers when it came to the last quarter. However, valuations are looking a little bit stretched. HUL in excess of 30 times and Lupin in excess of 20-21 times at the current levels are expensive. So, one has to wait for dips, probably Rs 680-690 on HUL and around Rs 1,100-1,150 on Lupin if it comes through.

One has to look within the space itself, Marico and Dr Reddy’s Laboratories are something that we like from the fast moving consumer goods (FMCG) and the pharmaceutical space respectively. We are pretty confident that the kind of earnings growth that these companies have given, will continue and valuations are looking very decent. So Marico at around 25 times forward earnings, Dr Reddy’s close to 15-16 times forward earnings look for a decent gain of around 20-25 percent from the current levels.

Kunal Saraogi, CEO at Equityrush

Hindustan Unilever & Lupin

For Lupin, one could look for a dip close to about Rs 1,250. I think that is where the major support is. So closer to the support, you are able to get in, which is a much better idea.

For Hindustan Unilever (HUL) I don’t see the stock going below Rs 680 in a hurry. So if you can get it around those levels or maybe close to about Rs 700, it is a good idea to get into it. Both of those stocks I have a long call on and I think any dip should be utilised to get into them.

Bhushan Steel

I do not really expect for Bhushan Steel to go up to much. People are waiting for an exit to come about and that’s happened today. In the next few days a lot of selling will come in. So use the opportunity that you have today or in the next couple of days to try and exit out to this one and move on to something which is qualitatively better.