By G.Chokkalingam
Founder & Managing Director, Equinomics Research & Advisory
I want to invest Rs 2 lakh each in ITC, HUL, Asian Paint, HDFC Bank & Bajaj Finance. Please suggest if these stocks are good for long term. I can hold for more than 10 years. Any other stocks, if you can suggest for long term. —SIMADRI SAMANT
Yes, all these large-cap stocks — except Bajaj Finance, which is still trading at very high valuation — are good to invest for the long term. Instead of Bajaj Finance, you may invest in NESCO for the next 10 years. A vast land bank in Mumbai can ensure huge profit stream for NESCO over the next 10 years.
I have 450 shares of KPR Mill at Rs 574, 13,000 shares of Shree Renuka Sugars at Rs 17 and 300 shares of GNFC at Rs 490. I am a long-term investor. —KALPESH DAMLE
You may hold both KPR Mills and GNFC which are quality stocks and have the potential to go up at least 20per cent from the current levels. Losses and debt and other financial liabilities at the consolidated level are a major concern for Shree Renuka
Sugar. Sell it if it recovers your cost price.
I have 3,400 shares of Vascon Engineers at Rs 36, 175 of Kridhan Infra at Rs 118 and 150 of LIC Housing Fin. What should I doRs —NITESH JAIN
Sell Vascon Engineers around Rs 24 if it recovers as it is made loss in the latest quarter and its receivables & inventories are quite elevated. Hold Kridhan Infra with a target price of around Rs 70 which is fair price of around 14 times current year’s expected consolidated earnings. Hold LIC Housing with a target price of around Rs 510 as around 9 PE and around 1.3 times price to book value on current year earning is quite attractive valuation for this company.
I have 2,000 shares of Shakti Sugar at Rs 16.70 and 5,000 of Ugar Sugar at Rs 16.4. Please suggest what should I
do? —GAJENDRA BHATT
If you can wait for another year, then please hold both of them as 2020 is likely to see another bull run in the sugar industry as the business cycle in the industry could turn around next year. Otherwise, sell them once you recover your cost.
I have 200 HUDCO shares since IPO allocation. Stock has moved down from Rs 100 to Rs 40. What should I do from a long-term point of view?—HITESH MAKKAD
Hold it with a target price of at least Rs 60 for long term as it trades at just one-time its book value.
I hold 1,900 shares of Punjab National Bank at an average price of Rs 98. What should I do?—AKHIL SHARMA
Unfortunately you may have to wait at least for another year to two to recover your cost as Punjab National Bank has surprised the investors with poor credit growth of just 5per cent and a whopping net NPA of 8.9per cent, apart from huge losses in the latest quarter.
Please send your queries on Stocks to et.stocks@timesgroup.com; Mutual Funds to et.mfs@timesgroup.com Tax to et.tax@timesgroup.com Insurance to et.insurance@timesgroup.com Realty to et.realty@timesgroup.com