A cashier receives Indian rupee banknotes from a customer. (Photographer: Dhiraj Singh/Bloomberg)

Should You Invest In HDFC AMC? #AskBQ

#AskBQ is BloombergQuint’s daily offering where market experts help investors make the right investment choices in the equity market.

In today’s episode, Jignesh Mehta of Kiranjadhav.com, and Gaurang Shah of Geojit Financial Services, shares their views on ICICI Prudential, Sun Pharmaceutical Industries, HDFC Asset Management Company, and Engineers India Ltd., among others.

Watch the full conversation here:

Here are the edited excerpts from the conversation:

Gunasekaran: Should I invest through a systematic investment plan route or make a lump sum investment in Idea Cellular and NBCC?

Gaurang Shah: Both are eligible in terms of long-term investment for two-and-a half to three years. The synergies will evolve and play at ground level for Idea after the merger. And NBCC has got a huge order book in terms of redevelopment of buildings and railway stations. I think Tata Steel, Dabur, Marico and Emami are better as an alternative investment idea.

Aakash Agarwal: Should ICICI Prudential be bought at current levels for short-term investment?

Jignesh Mehta: I don’t think the stock is going to be a rewarding bet. Going long on the stock is not a good idea and it is better to stay out.

M Kumar: I hold 100 shares of Dilip Buildcon at Rs 884. What should be my strategy for long term?

Shah: There are a lot of negative news flow about the company. I would advise the investor to protect his capital and to look at stocks like L&T, KNR Construction and PNC Infra.

Viewer: Is HDFC AMC a good stock to enter after today’s correction?

Shah: We are optimistic on the stock barring SEBI’s decision to cap expenses at 2 percent. The SIP collections of AMCs are only going to hit new historic highs. Take a plunge, but break your investment into three to four parts and invest every time there is a correction in the stock.

Rahul Katare: What is the right price to enter HDFC Bank?

Mehta: Currently, the momentum is weak. If the investor is buying into the stock, it is going to be a long-term bet. Keep your stop-loss at Rs 1,840 levels and target should should be Rs 2,200 in the next two to three months.

Kumar Jeeva: Are IDFC Bank and Engineers India good investments for two to three years?

Shah: Engineers India is definitely yes. I think Capital First is a better bet than IDFC Bank in terms of valuation and swap ratio in the resultant merger.

Kaushal Ram: Is it a good idea to go long on Sun Pharma currently?

Mehta: The stock can be purchased at current levels with a stop-loss of Rs 625. The stock should reach Rs 680 in the next three to four weeks.

Girish Patil: What should one do in the pharma space currently?

Shah: We have positive views on Lupin, Dr. Reddy’s, Sun Pharma, Cipla, Cadila Healthcare, Strides Pharma, NATCO and Aurobindo Pharma to name a few. Be patient with your investment, as the stocks are very vulnerable to bad news.

Mayank Saraf: What is your technical view on Radico Khaitan?

Mehta: Keep your stop-loss at Rs 380 and look for a target of Rs 485 for two to three months.

Analyst disclosures: Both analysts don’t hold any stock that were discussed today.

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