InvestorQ : Hi Dikshi, what should I do with the 3 specific positions I have taken in UPL, SBI Cards and Ambuja Cements, where price has fallen sharply after I bought?
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Hi Dikshi, what should I do with the 3 specific positions I have taken in UPL, SBI Cards and Ambuja Cements, where price has fallen sharply after I bought?

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diksha shah answered.
3 months ago
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I guess the three stocks you have raised questions are the stocks that are below the recommended price. I will deal with UPL in detail later. Firstly let me talk about what to do in SBI Cards and Ambuja cements and why I suggest the same.

SBI Cards continues to be a major beneficiary of the ban on fresh card business at HDFC bank as SBI Cards is the second largest credit card franchise in India after HDFC Bank. So, business wise it is a positive development for the stock and you should hold on.

Regarding Ambuja Cements, you can look to play it as a broad-based all India cement play. It is available at reasonable valuations among cement companies and there is an overall pick up in the demand for cement from construction and infrastructure. You can hold on.

Finally, I come to UPL. I am sure your concerns are due to the sharp correction on Thursday and the allegations on the fund siphoning. The allegations are nothing new and have been made even in 2017 and proved baseless after a detailed Audit Committee inquiry.

The CEO of UPL, Jaidev Shroff, has already clarified in a filing to the stock exchanges that there were no board level beneficiaries of any such action that might have happened. Hence the impact on the long term attractiveness of the stock is very limited.

To address your query at a macro level, the correction on Thursday was triggered by very stock specific events in UPL and market sentiments dipped due to the pricing of IRCTC OFS issue. You don’t have to get worried about either of these issues for investment perspective.

· UPL given at 480 (CMP-437) – Suggest to average again

· SBI Cards at Rs.840 (CMP-830) – Suggest to hold

· Ambuja Cements at Rs.256 (CMP-249) – Suggest to hold

Above is a quick summary of what to do on the 3 stocks.

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