Wait for IFCI to correct another 10%: Sajiv Dhawan
IFCI always has been a speculative stock. It is one of those small cap where lot of traders, speculators love to latch on to and it has happened right from Rs 10.
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| Sajiv Dhawan, MD, JV Capital Services
IFCI, what is your assessment of the business and where it stands as of now?
IFCI always has been a speculative stock. It is one of those small cap where lot of traders, speculators love to latch on to and it has happened right from Rs 10. It is always a stock which has a story, whether it is going for an NBFC licence or some policy news on the results. If you are an investor then you really need to take a long term view. At least for a few years the company has had some problems in the past but the worst actually is over.
The results may have disappointed the market but it is one of the stocks that went from Rs 5 to Rs 60 and a lot of people missed out. It is a stock where a lot of people even at Rs 50 feel that they can get a 10% to 20% upside which they have actually got. If you are looking from an investment perspective, wait for the stock to correct another 10%. If you are a trader then you need to keep deep stop losses. Having a 2%-3% stop loss in a stock like IFCI is really not enough because it is a stock with high beta and any given day can easily give you a move of 5% to 10%.
IFCI, what is your assessment of the business and where it stands as of now?
IFCI always has been a speculative stock. It is one of those small cap where lot of traders, speculators love to latch on to and it has happened right from Rs 10. It is always a stock which has a story, whether it is going for an NBFC licence or some policy news on the results. If you are an investor then you really need to take a long term view. At least for a few years the company has had some problems in the past but the worst actually is over.
The results may have disappointed the market but it is one of the stocks that went from Rs 5 to Rs 60 and a lot of people missed out. It is a stock where a lot of people even at Rs 50 feel that they can get a 10% to 20% upside which they have actually got. If you are looking from an investment perspective, wait for the stock to correct another 10%. If you are a trader then you need to keep deep stop losses. Having a 2%-3% stop loss in a stock like IFCI is really not enough because it is a stock with high beta and any given day can easily give you a move of 5% to 10%.
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