Amit Kumar Awasthi: I have 5,000 shares of IDFC Bank at an average price of Rs 75, purchased pre-split. What do you suggest now?
Chokkalingam: Hold it. Its quality of assets is one of the best in the industry; still trades around 1.5 times adjusted book value of FY17.Within 12-18 months, you could possibly see a price of Rs 75, which is two times current adjusted book value.
Alka Dutta: I have 1,000 shares of TECIL. Now we have received a letter of offer from company that acquirer Varghese Kurian want to buy them at the rate of Rs 13 per share. Should we go for it or hold?
Chokkalingam: Surrendering the shares in the offer seems to be a good option for TECIL as for years its operating revenues have been almost nil, it has eroded its net worth and stock is also suspended.
AK Singh: I hold 5,000 shares of GVK Power at Rs 6 per share. What is the future of this stock? Should I continue to hold?
Chokkalingam: In my view, it is difficult to see any sharp recovery on the fundamental basis as its net debt is nearly three-and-times its annual revenues at consolidated level. Hence, its annual interest costs and losses are around 54% and 38%, respectively, of annual revenues. Still you may hold it for any possible tactical upside in this penny stock considering further debt reduction possibilities from sale of its hard assets.
Subhanshu Tewari: I hold 900 shares of Moser Baer a an average price of Rs 10.9. What is the future of this share?
Chokkalingam: Sell Moser Baer on any recovery close to your cost price -its FY17 loss before exceptional item is little more than its total operating income, its debt and other liabilities are over eight times its annual sales and both its major business segments viz., storage and solar products make substantial losses.
Jay Satya: I have 100 shares of Sasken Communication at an average price of Rs 250. What are the long-term prospects of the company?
Chokkalingam: Considering the cash held by the company, current valuation and management’s track record of dividend payouts in the recent past, you may hold it for target price of around Rs 450.
Subrata Kumar Mitra: I hold 90 shares of PC Jeweller at a price of Rs 130 per share through IPO. Should I hold it for further uptick to come in near future?
Chokkalingam: You may use this bonus event to take your profits. Sell the stock as its current valuation is quite fair considering the fact that its consolidated receivables and inventories form 65% of its annual sales.