Talking Stock: Hold Yes Bank, Titan; sell JP Associates, HCL Info

_{By G Chokkalingam}

I have 4,000 shares of IDBI Bank at Rs 63.45, 400 of KaveriSeeds & 500 of Motherson Sumi. Should I hold or sell themRs —SANJAY SETHI

Sell IDBI Bank if you recover your cost as substantial degrowth in its credit base and the highest net NPA would make it difficult to return to significant profits in the near future. Hold Kaveri Seeds with a target price of around Rs 570 and Motherson Sumi with Rs 200 which are fair values for these stocks, in my view.



I have the following stocks: Tata Motors 200 at Rs 144, Titan 1,000 at Rs 44, Hindalco 300 at Rs 134, JP Associates 900 at Rs 3. Should I hold or sell themRs —K KGOYAL

Hold Titan with a target price of Rs 900 and Rs 265 for Hindalco. Sell Tata Motors above Rs 220 as JLR business would remain as pressure point for the company in the short- to medium terms. Book profits in JP Associates whenever there is any possible spurt in the stock price close to Rs 10 as in my view, not much value would be left for the stakeholders after meeting the debt obligations.

I have 80 shares of JP Associates at Rs 111, 80 of Reliance Power at Rs 150, 300 of Nagarjuna Oil at Rs 24. I am a long-term investor. Kindly advise. —RAJESH NARAIN

Having lost more than 95 per cent of your cost, you may hold JP Associates even though fundamentally not much left for the stakeholders. Hold Reliance Power with a target price of around Rs 40 which is around 10 times current year’s expected earnings. Sell Nagarjuna Oil as nothing much in value available for the shareholders as it is making losses and eroded the net worth.

I am holding 500 shares of HCL Infosystem at an average price of Rs 42. Should I hold or sellRs —CHANDUCHODHARY

HCL Infosystem has been making losses over several years and in my view, there are no signs of immediate turnaround. Sell the stock whenever it spurts over 10 per cent.

I have 20 shares of Capital First at Rs 570. Please advise what to do. What’s the right price to buy InfosysRs —SHUBAM GOEL

Large equity base post merger with IDFC Bank may make it quite long for gaining from this stock, still it is worth holding for medium to long term as price to adjusted book value on current prices look attractive. Large IT stocks may not give significant returns in the short term due sudden fall in oil prices and possible appreciation of rupee now.

I purchased 400 shares of Yes Bank at Rs 365. What should I do right now. —SK SRIVASTAVA

Buy another 400 shares a current price to reduce your average cost, if single stock exposure is within 5 per cent to 8 per cent of your portfolio. Two times current adjusted book value is very attractive for this bank, which has grown its business by 51 per cent yoy in Q2FY2019. In my firm view, change of leadership doesn’t deserve such punishment for this bank, which has evolved as a small institution over the years and still maintains net NPA among the lowest in the industry at less than 1 per cent.

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