InvestorQ : Hi Diksha, do you have any stock tips for 17 February? Do you suggest buying any stock or exiting any of my holdings like Burger King, ONGC etc?
prachi Patwardhan made post

Hi Diksha, do you have any stock tips for 17 February? Do you suggest buying any stock or exiting any of my holdings like Burger King, ONGC etc?

Answer
image
diksha shah answered.
4 months ago
Follow

OK, there are two parts to your question. Let me answer the part on some of the existing positions of yours. Burger King is below my suggested price but you don’t need to overtly worry about that. The undertone and the fundamentals of the QSR business and of the underlying stock are still very strong. You need some patience.

ONGC factors in crude at around $47/bbl, while actual price is $63. That mismatch will be filled up and that should help prices move higher. You can hold on to ONGC and Burger King for the time being. Regarding other positions, we are invested in PSUs but expect the privatization time table soon which will boost PSUs as an asset class. Hold on for now.

Let me now turn to your question on what stocks to buy. For Wednesday I suggest to add on to two additional very interesting stocks. I continue to remain positive on the commodity space and both stocks are being recommended for 2-3 months delivery. This particular space is likely to benefit in terms of volume growth and price traction.

· I suggest buying aluminium major Hindalco at a price of around Rs.300 for upside target of Rs.340 in a span of 2-3 months time frame. The big trigger for the stock is the strong traction on Novelis performance and that is likely to add to its margins in a big way in the coming quarters. Domestic market for aluminium has also been robust.

· Another pure commodity play I am looking at is Hindustan Zinc, which is part of the Vedanta Group. It remains a solid stock in terms of visibility, metal prices and dividend yields, which is still among the most attractive. You can buy HZL at Rs.302 for targets of Rs.335 in 1-2 months. Among metals, it is still reasonably priced by P/E ratio.

3 Views