By G Chokkalingam, Founder & CIO Equinomics Research & Advisory


I have 1,000 shares of Yes Bank at Rs 200. Should I hold this for long term?
-SAGAR AGARWAL
Unfortunately, you are forced to hold 75% of your shares for a period of three years. However, I suggest you hold entire holdings for the long-term as the move by the government to involves major players of the banking system to take controlling equity stake in this bank is a positive development not only for the economy but also for the public shareholders. Instead of single government-owned bank taking sole burden of a failed bank, the government’s move to involve several large private banks is a well-thought out strategy in my view. Apart from bringing in stability to Yes Bank, the combined efforts of banking leaders would also create equity wealth for the shareholders in the long-term.

I am holding 2000 shares of Vedanta at Rs 355. When do you expect it to recover to the same level?
-NIKHIL GHELANI
It might take several years for you to recover this original cost as all its major products (like oil and metals) are badly affected by the global deflationary conditions, first caused by the trade war and now aggravated by the spread of Covid-19. However, you may hold the stock with a target price of around Rs 140 for the next two years as the world would eventually come out of the current deflationary conditions.

I am holding 200 units of Jamna Auto at an average price of Rs 35.35. What should I do?
-PRIYAM JAIN
You may book losses even if it recovers marginally by about 5% as its valuation is stretched and the current deflationary conditions are not conducive for the automobile industry. You may re-enter the stock if it falls below Rs 20.

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I have 400 shares of Bhansali Engineering Polymers at Rs 74.5. Should I hold it or sell it out?
-SANJAY TAMRE
If you are willing to take another 10% risk, then you may hold this stock as it is likely to benefit from cheap oil prices in the medium term. Once the economy stabilizes after COVID-19 tapers off, the performance of this company, which is one of the two strong players in ABS products, is likely to improve significantly.

I have Escorts shares at Rs 792 and Titan at Rs 798. Should I hold these shares or sell?
-JATIN SHARMA
You may hold Escorts for the long-term. Considering the rich valuation and current socio-economic conditions, you may book profit in Titan now and re-enter the stock if it falls 10% or more.

Please send your queries on Stocks to et.stocks@timesgroup.com; Mutual Funds to et.mfs@timesgroup.com; Tax to et.tax@timesgroup.com; Insurance to et.insurance@timesgroup.com; Realty to et.realty@timesgroup.com.





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