Watch the interview of Ashu Madan of Religare Securities who shared his readings and outlook on specific stocks and sector & Ankur Kapur of finqa.in answered few personal finance queries.
Below is the verbatim transcript of Ashu Madan's interview with CNBC-TV18:
Tata Steel
If you talk about fundamentals, low realisations, falling margins, sluggish demands, global sluggish demands, everything put together is negative for the Tata Steel. But only a caveat or silver lining would be that it has been down and even if the market, when it was not correcting, metals and particularly Tata Steel started correcting much before than the market correction. So, it has probably come to a level where I feel that the risk reward would not be, obviously, one has to take a call to exit this stock but right now at this particular price, with some stoploss, I would suggest to hold this stock for some more time. Price wise I feel that probably 90 percent correction is already taken lace. Time wise, it might get into a long consolidation phase, so call would be whether to hold this stock, if you want to be in then, I would suggest to hold this stock, else at an appropriate opportunity one can shift to some private bank or some high beta because if the market reversal takes place, this could be an underperformer. So, that is the whole equation as far as Tata Steel is concerned.
Vedanta
Vedanta is in the final stages of merger and probably the only benefit which can drive out is that it will have access to the cash which is available in the subsidiary companies, which will be the only benefit. So one should hold and probably as and when the news flow will unfold, which is on the cards, we could see some more spurt in the stock price. I would recommend to hold this stock probably 10-20 percent gains on these levels.
Cairn India
Cairn India has been the grand underperformer, not just for one year, for two years. Rs 300 plus was the price from where everyone on the street has bought this stock and at every level the recommendation was to get out of this stock and get into something else because it has been a total underperformer.
Unitech
Holding Unitech will not help. All along we have been talking about the fact that just because all these companies are low price, people think that they can buy any quantity and hold with a thought that this is the lowest price. I do not think this stock is going to go anywhere and the kind of price destruction and the breakdown which has happened, I would not be surprise even if it goes to much lower levels. So everyone knows the reality with all these high debt companies, what is happening in the real estate front, topline, bottomline everything is in a bad shape. Therefore, all I can say is to get out of this as soon as possible.
Axis Bank
If somebody is a long-term investor, Axis Bank is a great stock to hold. If market declines some more, probably you would see some more correction in the bank. So, one should definitely hold or probably invest more if the stock price goes down. I am waiting for one more dip in the market. There would certainly be many stocks which will become lucrative. I feel that the trend of the market is still down, the bias is down, I see some kind of a knee-jerk reaction more in the market when we probably this time breach 8,000 which it looks likely, because every time we have become habitual of market bouncing back from 8,000 levels. So, whenever there is a sharp fall or a reaction in the market, at that point in time, probably Axis, I cannot say what would be the exact price at that point in time, but somewhere around that level, one can get into this stock
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