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In June 20 edition of Your Stocks, Shahina Mukadam, independent market expert and Sandeep Wagle of powermywealth.com answer your queries on investments in the stock market.

Q: Rajesh G writes to us from Bengaluru. He holds 500 shares of Avenue Supermarts at Rs 1,500 since a week. He is a medium-term investor and wants to know whether to hold or sell?

Wagle: I think he has bought the stock at the wrong levels, but fortunately he has bought the right stock, so he will make money. He should hold with a stop loss of Rs 1,420 and two to three month or maybe a couple of months here or there I see a target of Rs 1,600-1,620 and talk of the next 12-15 months I think the stock can certainly go well above Rs 1,700. So, I think if we can average it on a correction and take a little longer view I agree with you he should make better returns.

Q: Kannan P writes to us from Chennai. He holds 500 shares of Power Grid at Rs 203 since a month. He is a short-term investor and wants to know whether to hold or sell?

Mukadam: I would continue holding. The stock has been pretty range bound. It has not really given any substantial return over even slightly longer term period of about a year. But if you see the fundamentals is pretty strong. If you see the last quarter despite having a good jump in employee cost they still reported 8 percent growth in profits. Basically their profits is dependant a lot on their capitalisation of their capex. I think to that extent it is doing a very good job. It has capitalised something like Rs 78,000 crore in FY18 and I think every year will be a capitalisation of around Rs 25,000 crore of the next couple of years. With their return linked to the capitalisation I think it is very well placed. A good PSU and I would continue holding.

Q: R Prabhu writes to us from Tamil Nadu. She holds 100 shares Of Apollo Tyres at Rs 161 since 2 years. She is a long-term investor and wants to know whether to hold or sell.

Wagle: I would hold on. I do not see any weakness in Apollo Tyres. I would talk of a stop loss of Rs 230 with a 12-15 months' time horizon. I would look for a target of somewhere around Rs 330-350. I think it would be a safe bet.

Mukadam: I personally hold this stock and I think investor has made good amount of money, but he should continue holding it. I believe the anti-dumping duty and the improvement in the commercial vehicle (CV) cycle is definitely helping the company. Also, I think both their plants, Chennai as well as their Hungary plants should be increasing capacity and they should add to their numbers over the next two years. So I would continue holding.

Q: Ms R-S Somani writes to us from Kolkata. She holds 300 shares of SRF at Rs 200 since 10 years. She is a long-term investor and wants to know whether to hold or sell?

Mukadam: I think last year was better for the company then what is the expected results and what is the expected type of growth that I am expecting over the next one to two quarters. They are into specialty chemicals and a large part of their revenue and profits does come from that business. With the global trade wars going on I see slight bit of pressure coming on specialty chemicals. Having said that this long term investor has made a good amount of money and I would continue holding the stock. I don’t think that there is anything fundamentally changed in terms of the overall long term story. I would continue holding, I would keep a stop loss of Rs 1,800 if at all she wants to book in a shorter term and look for targets of Rs 2,200.

Q: Amit Gajera writes to us from Gujarat. He holds 1,000 shares of IDFC Bank at Rs 62 since 11 months. He is a long-term investor and wants to know whether to hold or sell.

Wagle: I am not very positive on the stock and the trend is clearly down. It has broken a crucial support of Rs 50.51 and at the most I feel it can go and test that. So my advice would be rather than getting attached on sitting on it, use any bit of a bounce to exit; that range would be Rs 48-50. If the stock were to go below Rs 37, the stock can even go down to Rs 30 levels. So without any emotions one should exit the stock either on a bounce or in case the stop loss is triggered.

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