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- Where should you invest today?
- Short term & long term views on market shares
Q. Bharath asks: He already has shares of Godrej Industries and he wants to get some more at current levels. Does it make sense for him to go ahead or should he wait for some correction?
Kunal Bothra says: It has already happened for Godrej Industries from 600-ish levels just about a couple of weeks ago. The stock has come back to 550 Levels. So it’s a good time in correction. Godrej Industries is a stock that is kind of a low beta kind of stock. So it’s not something that the stock moves into a very vicious kind of an uptrend. But whenever an uptrend begins for Godrej Industries, we can see the uptrends are the most trending and the strongest in nature. So I think this uptrend could be a good opportunity when you can look to buyback. The stock is already corrected. So I would suggest an average at current levels and hold on to Godrej Industries from a medium to long term as well.
Q. Niven: If Pipe Gas Sector is interesting to play?
Gaurang Shah says: We remain positive on the gas theme since for at least 2-3 years back. And the stocks that we have under our fundamental long-term coverage are Mahanagar Gas Limited, IGL, Gujarat Gas, Petronet L&G and GSPL, which is Gujarat State Petronet Limited. Over the last couple of years, the consumption has gone up considerably and with the focus of the government to prove the availability of clean and green vehicles, they have started investing in pan India infrastructure of gas pipeline distribution. We saw one of them commencing from Kochi to Mangalore if I am not mistaken. And, our sense is that the moment you have the infrastructure in place, the scarcity of availability of CNG and LPG, when you move out of city boundaries, the availability as of now is not there. So I think that once this infrastructure is in place, you will have the problem getting solved out. So we remain extremely positive on MGL, IGL, Gujarat Gas, Mahanagar Gas and GSPL.
Q. Sabanand asks: He has 500 shares of Federal Bank and Bank of India. He is making 7-10% profit on his holding. He wants to know whether he should continue to hold on to both of these counters and accumulate some more, or should he look to switch to other private sector banks for the medium to longer term.
Gaurang Shah says: Federal Bank is not a stock that I am worried about. In fact, we have a long-term target of buy on shares. Bank of India is something that I am worried about. As a disclosure, we have a sell call on the Bank of India. And it’s good that you have profits, take your money off the table. If you want to look at public sector banks, then SBI would be the preferred destination. Otherwise, you can definitely look at smaller private sector banks. As a disclosure, as a stock recommendation, we have identified City Union Bank as an investment idea with targets close to somewhere around 200. So my sense is that we can book profits in Bank of India, and moving to a smaller private sector bank like City Union Bank or he can look at larger players like Axis Bank, HDFC Bank, or ICICI Bank.
Q. Divya asks: She wants to get the view on Tourism Finance Corporation Of India. She wants to purchase it at current levels.
Kunal Bothra says: TFCI looks attractive. The short-term charts are indicating a breakout if I am not wrong. The stock is placed at 80-81 levels and the previous breakout levels for the stock was around 75-76.5. So I think the stock has just recently given a breakout. It is a very steady chart as such. It looks attractive and if you look at it from a short-term view, I would recommend a buy with a target closer to 80, 88, 89 on TFCI.
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