Talking stocks: Sell Andhra Bank, hold Cipla
How is the future of SreeleathersBSE -0.15 % in the short term as well as the long term?
SreeleatherBSE -0.15 % has got strong balance sheet in terms of significant net cash and excellent working capital management.But stock trades at 31 PE on FY2017 earnings. In case, the stock falls below Rs 140, you may consider buying it for long term.
I have been holding 100 shares of Andhra BankBSE 0.35 % and 50 of IDBI for more than a year. Should I hold or sell? I also have 100 shares of VIP where my profit is about 223 per cent, and 100 shares of Apollo TyresBSE -0.32 % and 50 of Ashok LeylandBSE 0.33 % where the profit is more than 100 per cent. What should I do?
You may sell Andhra Bank and buy a private bank like Karnataka BankBSE -2.20 % as the former trades at over 4 times adjusted book value and has net non-performing assets at over 7.5 per cent. Karnataka Bank trades at 1.2x and has net NPA at less than 3 per cent.
Sell IDBI BankBSE 0.09 % also as it has net NPA at over Rs 25,000 crore (13 per cent, among the highest in the industry) and also making losses. Use the proceeds to buy a safer banking stock, such as HDFC BankBSE -0.01 %. On any further rise in the stock price, book profits in VIP IndustriesBSE 2.45 % as it trades over 30 times FY2017 earnings. Apollo Tyre is a hold, but in my view, MRF has a stronger potential with a target price of Rs 1 lakh in the next three years. Ashok Leyland trades above its target price of Rs 98. So, shift to M&M.
I have over 10,000 shares of CiplaBSE 0.86 %. Please advise at what rate I should sell them.
Hold Cipla with a target price of Rs 600. It is likely to improve its performance significantly in FY19.
I own 2,500 shares of PNB GiltsBSE 0.00 % at an average cost of Rs 60.50 and it’s currently trading at Rs 49. Please advise if I will be in a position to get back the cost in about 6 months.
You may hold it as it offers a dividend yield of close to 5 per cent at the current price and expected fall in interest rate is also positive for the company.
I have 150 shares of RS SoftwareBSE 0.81 % purchased at Rs 185 (current price Rs 75). Please advise what to do.
Sell if there is any recovery in the stock. In FY2017, RS Software made a net loss of over Rs 18 crore, consolidated revenue fell by 60 per cent and employee cost accounted for 91 per cent of the total revenue.
I have 250 shares of Fortis HealthcareBSE -2.89 % at Rs 187, and 300 Gujarat Pipavav PortBSE 0.87 % at Rs 139. What are their prospects in the next 1-3 years?
Hold Gujarat Pipav as its strong balance sheet, significant correction in the stock price and long-term potential in the port-based business augur well for the stock. Hold Fortis also as it has already fallen a lot, but it has the potential to unlock some value from the diagnostic business.
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