Buy, Sell Or Hold: Jio Financial, Paytm, BSE, SBI — Ask Profit

Should you buy shares of Jio Financial Services Ltd. and Yes Bank Ltd. at the current market price? Is Vishal Mega Mart Ltd. a good choice from a long-term perspective? Should you keep holding shares of BSE Ltd. and Angel One Ltd.? Is it the right time to exit Patym parent One 97 Communications Ltd. and enter State Bank of India?

Manish Chowdhury, head of research at Stoxbox and Ravi Singh, senior vice president of retail research at Religare Broking, answered these investor queries and more on NDTV Profit's Ask Profit show.

Chowdhury: Hold

• The stock has corrected significantly from Rs 400 levels to Rs 220.

• The business is still in its early stages, with segments like consumer lending, asset management, and broking yet to show consistent performance.

• All segments are led by experienced professionals, and long-term investors should benefit.

• Investors with a two-year perspective can consider entering at current levels.

Chowdhury: Sell

• The bank reported decent quarterly numbers, with stable non-performing assets and profits.

• A major overhang remains due to the potential stake sale of SBI’s 26-27% holding, with ongoing market speculation.

• Investors may consider exiting and reallocating funds to better-performing mid-cap banks like Federal Bank Ltd., which is expected to see improved return on capital employed and net interest margin under new leadership.

Singh: Hold

• The stock is facing profit booking, making current levels an accumulation opportunity.

• Rs 95 is a strong entry level with a stop-loss at Rs 90, while a 6-8 month target is Rs 125-140, offering a 20-25% return potential.

• Investors should wait out the current market distress and hold for the long term.

Chowdhury: Hold

• The company generates 70-75% of revenue from its private labels, ensuring higher margins.

• It has strong Tier-II market penetration with 450 stores across India, leading to lower rental costs compared to Tier-I cities.

• The stock is currently trading at high valuations, but with its expansion plans, a one-year holding period is recommended.

Chowdhury: Hold

• Stocks with high valuations have faced corrections, making short-term movements uncertain.

• Long-term trends favour financial market penetration, and BSE has seen a shift in cash and derivatives volumes from the National Stock Exchange Ltd.

• A two to three-year holding period could be beneficial as market participation grows.

Chowdhury: Hold

• Among brokerage firms, Angel One remains a strong long-term bet.

• New client additions have slowed, but the company is expanding into wealth management and asset management, with earnings from these segments expected in two to three quarters.

• At Rs 2,200 levels, it offers a good long-term investment opportunity.

Chowdhury: Hold

• SBI remains one of the best banking franchises, consistently posting annual profits of Rs 65,000-70,000 crore.

• The bank aims to grow its profit pool to Rs 1 lakh crore in the next two to three years, indicating a strong earnings trajectory.

• Investors should hold for one to two years as the outlook remains positive.

Singh: Sell

• The stock lacks fundamental and technical strength.

• Investors should book profits and exit, reallocating funds to stronger stocks like SBI.

• The downside risk is around Rs 500, making the risk-reward ratio unfavourable at current levels.

Disclaimer: The views and opinions expressed by the investment advisers on NDTV Profit are of their own and not of NDTV Profit. NDTV Profit advises users to consult with their own financial or investment adviser before taking any investment decision.