Titan, Britannia, Tata Steel — Buy, Sell Or Hold? AskBQ
Buy, Hold, Sell: Here's what experts say about Titan, Cipla, Varun Beverages, Tata Steel, CAMS, Hikal, Laurus Labs
Are stocks of fast-moving consumer goods makers a good bet as the rural economy shows signs of improvement and commodity prices cool? Is pharma a good bet after three years of underperformance? Do steel companies offer value?
Vivek Karwa, chief executive officer at Vridhi Investment; and Shrikant Chouhan, head of research at Kotak Securities answer these and more investor queries on BQ Prime's special 'Ask BQ' show.
Godrej Consumer Or Britannia
Karwa: Britannia Industries Ltd.'s growth numbers are better as the company is posting return on capital of about 50%. Post-Covid margin pressure and commodity spike is easing.
With rural demand picking up and upcoming state and general elections, positive sentiment is coming back for the FMCG space.
Karwa: As the consumption boom picks up in India, Titan Co. would be able to beat Nifty returns for the next five to 10 years. It may see underperformance due to impact of Covid but that has passed now. Going forward, Titan will ride the consumption and jewellery boom.
Chouhan: Titan will certainly outperform Nifty in the five-year period. Titan should be on the watchlist and buying list whenever there is a correction or 'buying in dips'.
Karwa: Varun Beverages Ltd. is doing good and it's giving dividends as well. Company is on the right trajectory but valuations may be costly.
Chouhan: Stock is forming specific bullish formation on the charts. Whenever there is a specific correction in the market, it tries to take support at its closest average. This time also, the stock has fallen to the levels of Rs 890-900, but from there it is recovering again. It may spend more time in the range of Rs 850-1,000, but expecting the stock to move to Rs 1,250-1,300 levels.
Karwa: Tata Steel Ltd. isn't going to do well in short-to-medium term but long-term prospects are good because the downtrend in the commodity cycle has completed.
Chouhan: The stock has fallen vertically from the highs of Rs 132 to Rs 110 where it has support of 200 days simple moving average. Stock can be added at Rs 105-110 levels. Stock to remain between Rs 105-125 in the short-term. In case there is a pullback from Rs 125 levels, then it is ideal to exit the stock.
Jubilant Pharmova, Hikal, Lauras Labs, Syngene
Karwa: Overall, the view is good on pharma stocks. The sector has underperformed in the last three years but due to increase in demand and supply shortages in the U.S., Indian companies are expected to do well. The sector will revive in the next three to nine months and is likely to bounce back.
Favourite pick: Piramal Pharma Ltd.
Equal weight on Jubilant Pharmova Ltd., Hikal Ltd. and Syngene International Ltd.
Chouhan: Hikal looks good. It is trying to form a higher bottom sort of formation. Expecting the stock to move to Rs 350-400 levels in the long run. Advised to avoid Laurus Labs Ltd. because the stock is consistently failing to sustain at higher levels.
Computer Age Management Services
Karwa: Going to be a high growth company because there are only two companies servicing the mutual fund sector. Invest for longer-term and buy on dips.
Chouhan: Computer Age Management Services Ltd. should be avoided as it reached from Rs 2,600 to Rs 2,300 in a very short span of time which shows it can again reach its low of Rs 2,000-2,050. For medium-to-long term view, Central Depository Services Ltd. can be added to the portfolio instead. It's currently expensive but can be bought if corrected and falls to the levels of Rs 1,300-1,350.
Karwa: Growth numbers are good and the stock isn't performing right now. But by next Diwali, Nesco Ltd. should be up to Rs 800 from current levels of Rs 650.
Chouhan: Expecting to move to at least Rs 425 from Rs 388 levels right now. Cipla Ltd., Cyient Ltd. and Godrej Consumer Products Ltd. can be added at the current levels.
Watch the complete conversation here:
Disclaimer: The commentary and advice on BQ Prime digital and social media platforms is not a full financial plan. Investors are advised to consult a certified financial advisor/planner when making an independent decision regarding investments. No views mentioned on the programme are personal advice to anyone. Quintillion Business Media Ltd (BQ Prime) is not responsible for any risk or loss that might occur as a result of using this information in any way, regardless of your interpretation of the advice. BQ Prime digital and social media platforms provide views of only SEBI registered investment advisors/analysts.