Is It The Right Time To Invest In Sugar Stocks? #AskBQ
#AskBQ is BloombergQuint’s daily offering where market experts help investors make the right investment decisions in the equities market.
In this episode, Abhijit Pathak of Definedge Solutions and Parthiv Shah of Tracom Stock Brokers gave their views on NBCC, LT Foods, Tata Motors, and many more.
Watch the full conversation here:
Here are the edited excerpts of the conversation:
Abhishek Panda: I bought shares of LEEL Electricals at Rs 250 apiece with a five year horizon, but the stock is now close to Rs 140 levels. What should I do?
Parthiv Shah: At this juncture, whatever capital is left, is worth protecting and then converted into a better sector like automobiles or auto ancillaries. I do not recommend holding LEEL for very long.
Karthik: I am short on Dr Reddy’s Laboratories at Rs 1,980, can you suggest an exit rate?
Abhijit Pathak: Worst case scenario is that the trader use the day’s high as a stop loss and wait for Rs 2,000 levels to break. In case Rs 2,000 levels do not break, he will have to exit.
Raghav: What is the long term view on Tata Motors? Can one enter at current levels?
Parthiv Shah: For Tata Motors, I recommend holding for two-three years and not exiting at current levels.
Sanjeev Agarwal: I bought 20,000 shares of NBCC at an average rate of Rs 120 for long term. Should I average at current levels?
Abhijit Pathak: I do not recommend averaging at current levels. Only above closing at Rs 110 levels can the stock gain strength.
Sajal Thakkar: I bought Apollo Hospitals at Rs 962 apiece. I need a short-term view on the stock.
Abhijit Pathak: Since it’s a short-term trade, the investor can hold with today’s low as the stop loss.
M Kumar: I bought 300 shares of Sarda Energy at Rs 520 with a six months’ view. Should I hold or average?
Parthiv Shah: I think one can hold on with a six months’ view, after that one will have to review the situation and take a call.
Najeeb Abdurahman: I bought 2,000 shares of LT Foods at Rs 96 apiece. Should I hold or sell?
Parthiv Shah: These rice stocks have had a massive rally, and now they are correcting. I would thus suggest one to avoid the sector for the time being.
Satya Subhash: What is your view on a fresh entry in BHEL at current levels for the next six months?
Abhijit Pathak: BHEL looks quite bearish to me.
Satish Atara: What are your views on Shankara Building products?
Parthiv Shah: It’s very difficult to give a ‘Buy’ call on the stock because even at this juncture, is massively very overvalued.
Venkatesh Monagiri: Do you recommend getting into Vedanta at this point?
Parthiv Shah: On a consolidated basis, this company is poised to generate very good cash flows. So I do recommend buying Vedanta at current levels.
Shivam Agarwal: I bought Nandan Denim at Rs 130 apiece. Should I buy more at current levels?
Abhijit Pathak: No, I don’t recommend averaging at all. The investor should, in fact, exit at any high.
Gopikrishna: Do you suggest an entry into the sugar industry, particularly in Dwarikesh Sugar?
Parthiv Shah: I would avoid this sector because sugar companies are complaining about pricing pressures. Also, in an election year, it is best to avoid the sector which is at the mercy of the government.
Analysts’ disclosure: Both the analysts do not have any financial interests and do not hold any stocks discussed today.
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