Your Stocks: Recommendations by experts

Orchid Chemicals and Pharmaceuticals has reacted to the corporate debt restructuring (CDR) package, which has got approved a couple of months back and the kind of debt it has got on its book of around Rs 3,500 crore, does not give comfort. Though the CDR package will give some benefit in terms of its interest in finance cost, our take is that there are much better plays into the market. So something like Dr Reddy’s Laboratories where valuations are pretty attractive even at the current juncture is something that we are liking. So one can exit the stock on rallies and possibly look at Dr Reddy’s on declines."

GMR Infrastructure

If you look at GMR Infrastructure, it is clearly a story of deleveraging, monetisation of its non-core assets and so on and so forth. So it will take quite a while for the management to improve their cash flows and reflect the same in the return ratios as well. I would suggest a couple of stocks maybe a couple of players from the road players, which is going to see huge amount of traction going forward as well. So something like a Sadbhav Engineering and IRB Infra is what I would like to suggest."

One should stay with the leaders, though Larsen and Toubro (L&T) has disappointed in terms of mixed set of numbers this quarter, going forward it is going to remain a market leader when it comes to infrastructure development and its diversified portfolio across economic activity that can get reflected on the stock. So my opinion would be, invest in these two-three stocks over the next three-four years, one can reap richer dividends rather than putting up money in GMR or GVK.

Oriental Bank of Commerce

The news surrounding the stock will have detrimental effect on Oriental Bank of Commerce (OBC). Our take has always been private sector banks and within the banks itself, Axis Bank and ICICI Bank is something we are liking in terms of better asset quality, well capitalised, stable net interest margins (NIMs) and good contribution of non-interest income (NII) as well.

From the public sector undertaking (PSU) space, we also like Bank of Baroda (BoB) considering the asset quality and the capital adequacy that it possesses. So my take would be to exit the stock possibly and look at private sector banks  or BoB within the PSU space.

Ashok Leyland

Ashok Leyland will be a key beneficiary in the up cycle when the capital expenditure cycle turns around. So it is a key beneficiary once the medium and heavy commercial vehicle (MHCV) cycle turns around. The stock should do extremely well going forward as well. The recent news related to the sell of its Chennai property is a value adds to the stock in terms of addition to its bottomline.”

The EBITDA margin, the losses that it has been posting should start improving going forward as well. The new key launches would be a key for Ashok Leyland’s fortunes going forward as well. So any revival in LCV, MHCV segments which happens over the next three-four quarters, Ashok Leyland stands to benefit quite substantially. One should hold on to the stock, we have got a target of Rs 42 with a 12-months time horizon.

Kunal Saraogi, CEO of Equityrush

Orchid Chemicals

I think today’s rally is a good opportunity to exit out of Orchid Chemicals and Pharmaceuticals and move to something like a Tata Chemicals, which has got a more robust chart structure and I think if you invest in that stock, you are more likely to make more money plus your investment is likely to be safer. Orchid I would recommend that you use the rally that we are seeing right now to exit the stock."

GMR Infrastructure

I don’t think that it is a good idea to get into GMR Infrastructure just yet. I think the stock needs to clear Rs 30, which is a major resistance on the charts and till the time it doesn’t cross Rs 30, I think this is not a buyable stock. So, one should wait for it to cross Rs 30, if it does that, definitely one could get in for a target of at least Rs 36 in the medium-term.

On a longer-term chart basis, it is a good idea to wait till the time it crosses Rs 30 and you might see it going to Rs 40 but the first thing is wait for Rs 30 to cross and only then get it.

Oriental Bank of Commerce

I think for all government banks the charts have deteriorated. In fact for Oriental Bank of Commerce (OBC) there is a gap in today’s trade and if this gap sustains towards the close of the day, I think that the stock could go down further.

My target on the stock is somewhere close to about Rs 250 where the next meaningful support should kick in. So at the moment, I think one should be bearish and in case you are holding the stock for sometime, I think it is a good idea to probably exit now and look to re-enter at lower levels.