Nivea personal care products sit on the shelves at a warehouse in Bengaluru, India. (Photographer: Samyukta Lakshmi/Bloomberg)

Which Is The Best FMCG Stock? #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, Kunal Rambhia of The Streets, and Astha Jain of Hem Securities, share their views on L&T Finance, Sintex Plastic, Sterlite Tech, State Bank of India, and ITC, among others.

Watch the full conversation here:

Here are the edited excerpts from the conversation:

Kukku Mathews: I hold 2,000 shares of Sintex Plastic at Rs 40 apiece with a five-year time horizon. Please advise.

Astha Jain: The stock is very weak on the financial performance front. I would advise to exit and invest in pharma stocks like Lincoln Pharma and Sanofi India.

Krish: Can you advise regarding the entry level and target price for Biocon for the next six months?

Kunal Rambhia: The stock is on an uptrend. The best entry would be at Rs 660 levels.

Bhavanishankar: I need technical views on Jubilant FoodWorks purchased at Rs 1,360, Shankara Building Products at Rs 1,300 and Tata Elxsi at Rs 1,363. My time horizon is two to three months.

Rambhia: Jubilant is making a positive rally. Hold it with a stop-loss of Rs 1,320 and have a target of Rs 1,500.

For Tata Elxsi, hold it at a stop-loss of Rs 1,300 and start adding more at Rs 1,375 to sell at Rs 1,450.

Shankara Building Products is on the downtrend. An exit is advisable at Rs 1,400.

Saurav: Is this the right time to invest in State Bank of India for long term?

Jain: State Bank of India is a positive stock in the PSU banking space. The private sector banks like HDFC Bank and IndusInd Bank look positive at least for the next one year.

Aakash Agarwal: Is the right time to enter L&T Finance?

Rambhia: Hold with a stop-loss of Rs 145 on a weekly closing basis, look for a target of Rs 175.

Chiranjeev Sarkar: I have purchased shares of Tata Global Beverages at Rs 223. I need advise for the next three months.

Rambhia: If you are holding, try to exit at Rs 243 and we can expect a rally towards Rs 280 levels if it closes above Rs 250 levels.

Yash Malhotra: I need a one-year perspective on Excel Industries and Merck.

Rambhia: I would recommend to hold for Excel Industries, and for Merck would recommend an exit if you’re holding with a short-term perspective. You can re-enter once it goes above Rs 3,400 levels.

Gopigopal Ramakrishnan: I need an advise on GSK Consumer? Also, which is the best bet in the FMCG space?

Jain: The deal will be positive for the company and would recommend a hold. And, if we look at the FCMG pack , our bet is on ITC as it is the only stock available at reasonable valuations. We are also positive on Dabur India for the same reason. The elections and the GST will continue to benefit the sector.

Viewer: I have bought shares of Bank of Baroda at Rs 146. Should I hold or book for losses?

Rambhia: It is a breakdown. Hold at a stop-loss of Rs 110. If the stocks hold that level, then you would get an exit at Rs 130 levels.

Manikandan: I have purchased Finolex Cables at Rs 598. What is your view for long term?

Jain: I would advise an exit and switch to Sterlite Technologies as the company may benefit from 5G technology.

Ankit Mishra: Which is a better bet at current levels—RBL Bank or HDFC Bank?

Rambhia: Undoubtedly, it is RBL Bank. Rs 590 is a good entry level. I would wait for the stock to reach Rs 615 keeping a stock-loss of Rs 695.

Alok Kumar Verma: What is your view on the aviation sector for long term and what are your views on SpiceJet?

Jain: We are not every positive on the sector due to volatility of the aviation turbine fuel prices. And our pick would be IndiGo over Spicejet.

Analyst disclosures: Both analysts do not hold any stocks that were discussed today.

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