Talking Stocks: Hold Pfizer, sell HUL

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By G Chokkalingam, founder, Equinomics Research & Advisory

I hold 800 shares of HULBSE 0.70 % at Rs 290, 400 of InfosysBSE -0.51 % at Rs 750 and 300 of HDFC BankBSE -0.79 % at Rs 850. Should I hold or book some profits?-NAMA PAREKH

Hold both Infosys and HDFC Bank as both likely to give decent returns. Sell HUL above Rs 1,216, which is fair price for the stock in my view.

I purchased 45 shares of PfizerBSE -0.66 %at Rs 1,200 each and 20 of InoxWind at Rs 215 each. Should I hole them? -R K GUPTA

Hold Pfizer with a target price of around Rs 2,100 as it holds a lot of free cash and its parent is opting for acquisitions, which may expand the product portfolio of Indian company in future. Sell InoxBSE -3.55 % Wind as fundamentals are likely to worsen further in my view.Its revenue has crashed, and made significant losses in the latest quarter. It was sitting on huge receivables of around Rs 2,400 crore as of March 31, 2017, while its total income in the latest quarter is just about Rs 65 crore. Solar power cost has crashed which will make it difficult for INOX Wind to improve realisation and sales in a significant manner in future.

I have 1,055 shares of Indoco RemediesBSE -0.05 %, 500 of IPCA Lab and 300 of Bharat ElectronicsBSE -0.77 %. Kindly advise. -HARISH GUJAR

Sell Indoco Remedies and buy JB Chemicals. While Indoco Remedies made loss in the latest quarter, JB Chemicals made decent profits and also sitting on significant amount of free cash (net of debt). Hold IPCA with a target price of around Rs 550 as it is likely to turnaround its performance in the remaining three quarters of current fiscal from the net loss reported in the first quarter.Hold Bharat Electronics with a target price of around Rs 200.

I hold 200 shares of Blue DartBSE -2.10 % for more than 10 years. I am looking to sell them in the near future. Kindly advise. -VIMOCHAN BABU

In FY17, Bluedart started slipping from its growth path and now it trades at over 70 PE on expected earnings in the current year.Still, hold the stock with 5 per cent to 10 per cent upside considering the benefits of GST for the logistic companies.

I have purchased 21,000 shares of PTC India at Rs 40.9, 3,000 of Allcargo LogisticsBSE -0.46 % at Rs 172, 2,000 of Power FinanceBSE 1.07 % and 4,000 shares of ONGCBSE -1.49 % at Rs 165. What should I do with them? -ASHOK KUMAR

Hold PTC India with a target price of around Rs 140. Hold AllcargoBSE -0.46 % with a target price of around Rs 200 as it trades at attractive valuation of 13 times one-year forward earnings. Hold Power Finance CorporationBSE 1.07 % with a target price of around Rs 145 as it trades at less than its book value on its expected earnings in FY19. Hold ONGC with a target price of around Rs 210 proposal to acquire HPCLBSE -2.74 % and recent significant recovery in the oil price augur well for this stock.

I have 1,000 shares of VedantaBSE -1.91 % at an average price of Rs 170. Should I hold or sell? -NARESH KUMAR

Hold Vedanta as further marginal upside of around 5 per cent is possible as metal prices remain strong.

I am holding 3,300 shares of Pratibha IndustriesBSE -2.96 % at Rs 12.8. Should I hold or sell. -VK SINGH

Sell it­ company is under debt restructuring. Considering the debt of over Rs 3,300 crore and fixed assets of around Rs 700 crore as of March 31, 2017, it is doubtful that shareholders will get any significant benefit after settling lenders’ money.


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Loknath Das

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