Watch the interview of Sharmila Joshi of sharmilajoshi.com to answer all your stock queries and Harsh Roongta of apnapaisa.com answered few personal finance queries.
Below is the verbatim transcript of Sharmila Joshi's interview with CNBC-TV18:
ITC
I completely agree that ITC is the largest tobacco maker and it has other positives playing for it as well. The fact that they are getting aggressively into food business and trying to sort of balance this loss of business that they are getting or are likely to face increasing headwinds as far as cigarettes and tobacco goes ahead, we see them getting hit at the time of every Budget etc, so there is a lot of reasons to recommend ITC but at this point in time what we finally seen is that volumes are actually not growing and this has been a continued trend for a large number of quarters and cigarette volume that is. The food business, there is still time for it to catch up. Similarly for SBI we have had two quarters of good numbers but inspite of the fact what we must remember is the entire PSU banking space is suffering a little bit largely because of the kind of asset quality issues that they have and they will continue to have at least for another quarters. So what you need to do is look at some other FMCG plays because I would look at ITC as more as a play on consumption and FMCG and maybe look at midcap stocks like Dabur India or Emami where there could be more growth going ahead and as far as banking goes look at private banks because banking is a good sector to be in going ahead and to my mind private baking is slightly better placed in terms of asset quality etc as compared to PSU banks. So, from that perspective look at private bank maybe an ICICI Bank or a YES Bank going ahead.
TVS Motor
TVS Motor Company has already seen a huge rally, I would say from Rs 40-50 levels to about Rs 300 levels, which makes this Rs 238 price a little high priced to have entered into. You have not really seen it consolidate at a price anywhere in the Rs 200-300 range. Today we have a market which is correcting and all the interest rate sensitives are the first to take in the chin. In terms of the kind of fundamental and the kind of performance we have seen on TVS Motor, that has been fairly good. So, I am assuming that you are not a trader and you are willing to wait it out in the stock for about 12-18 months and there is every reason to stay put in TVS Motor because once this whole cycle starts, we are in a cycle where interest rates are falling in which case you will start seeing numbers for two-wheelers, four-wheelers improve over a period of time and TVS Motor has many exciting launches which has ensured that they continue to grow even in this market where the leaders are finding it difficult to post good sales numbers. So, I would say stay put with 18 months perspective.
Cipla
What we have witnessed in the last six months is that we have sort of heard from a lot of analysts that pharma has gone up too much and it is price to perfection which seems to have taken a toll on the entire sector because there was a widespread feeling that for pharma stocks to do substantially better from here, you will have to give it time and there doesn’t seem too much of a room on the upside. That said Cipla is on a strong wicket. The kind of numbers that they have had and the kind of game plan that they have going ahead is good to my mind. In this current correction maybe you will see it fall a little bit and if that happens maybe you could think of adding some. However, by and large, if you are a long-term investor you shouldn’t be overly worried. Now you need to give pharma as a sector time to move from the levels that they are currently to sort of for their businesses as a whole to go to the next level and for that you will have to give it close to 18 months at least. So, if you have that kind of a time horizon definitely stay invested in Cipla.
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