Wait and watch for Shalimar Paints: G Chokkalingam, Centrum Wealth Management

G Chokkalingam, Executive Director & Chief Investment Officer, Centrum Wealth Management, in a chat with ET Now, gives his stock call


What is your call on the paint companies?

The problem with paint companies is like Asian Paints is that they have all moved up very fast and they have not eroded the wealth of investors. In bearish market when people lose money in 8 out of 10 stocks obviously they come to the counter where they are still making money and try to encash the stocks by booking profits. So I would wait for some more correction. There is a potential for acquisition in Shalimar Paints and the stock has corrected after touching almost close to Rs 1000 to very low level now. Almost about 60% fall has been there but again the stock has moved up a lot in the last few weeks. One can definitely wait for some correction and then pick it up because there is an opportunity for acquisition. The promoters holding is quite weak and there has been talk of acquisition in this particular company.