Stock Tips is the hot topic for any investor. Recently, i included Stocks Category on my Blog. The objective of this category is to provide critical analysis of Stocks/Specific Sectors/Markets. Personally i am not in favor of sharing any Stock Tips as each investor has different investment objective and time horizon. As i highlighted in my post, Stock Market Tips – Business of Selling Dreams how this has become a business. After i started posting my views on Stock Market, i am flooded with queries from my readers on Stock Tips and Recommendations. In my opinion, any stock recommendation without any holding is of no meaning. Based on my readers request, i have decided to share my stock portfolio on my Blog. Through this section, I will share the stocks which i am buying and selling along with reasons for the same. I will also share the sectors on which i am bullish and sectors which i am avoiding. I will also discuss the most popular stock tips floating in the market and why i agree or disagree with the same. In one of my future post i will share how i select a particular stocks but the sole criterion is only Stock Valuation. I only pick those stocks which are available at cheap valuation with strong growth potential.
After touching the bottom of around 7950, currently the market is in short-term bullish trend. Experts are of the opinion that it is a temporary phase and the market will drop after this brief rally. The main reason is that FII’s are still net sellers whereas DII’s are net buyers. Last month Mutual Fund inflow was very strong therefore DII’s are supporting the market. It will be interesting to note whether FII’s will be back in the market before DII’s empty their pocket. If it doesn’t happen then the market can drop to lower levels. For the time being market signals are bullish.
Currently, i am bullish on following sectors.
(a) Private Banks: Any economy recovery cycle benefits the banking sector the most. I am not convinced with the performance of Public Sector Banks as they are obliged to fulfill social agenda of the govt which impact their performance. Though govt is trying hard to bring down NPA’s and bring accountability but in my opinion, there is a long way to go.
(b) Infrastructure: With the thrust on Infrastructure sector, next few years will be the golden period for infrastructure companies.
(c) Oil: As i mentioned in my other posts that crude is on the path of recovery. It will stabilize near 70 dollars. Any recovery in crude is good news for Oil and Refinery companies. Also, the subsidy burden is not a major concern for oil companies. They can now focus on performance.
Currently, i am bearish on following sectors
(a) Telecom: With the launch of Reliance Jio the margins of telecom companies will be under tremendous pressure. All the telecom companies are dropped from Asia Index which is also not a good sign for the sector.
(b) FMCG: With the concern on monsoon, Maggi issue, and other developments, the FMCG sector will be a nonperformer. These stocks are also dependent on Rural demand which may be stagnant.
(c) Auto: Though many analysts are bullish on some of the auto stocks but i am bearish on this sector. Similar to FMCG, they are also dependent on Rural demand. A good monsoon can change the trend.
My Stock Portfolio
Currently, i track only 50 NIFTY stocks. To check the list, CLICK HERE. Besides NIFTY stocks, i track select mid-cap and small-cap stocks which are promising. The 3rd category is beaten down stocks but has a strong possibility of recovery. All the stocks are selected after technical and fundamental analysis.
1. RIL(Reliance Industries Limited): Though this stock was non-performer during last BULL cycle, but investor community is bullish on this stock. The launch of Reliance Jio will be the positive trigger. Also, there are news that the company has applied for MSO license which is another positive trigger.
My Purchase Price: Rs 895, Rs 912, Rs 947 and Rs 978
Average Purchase Price: Rs 947
Current Profit/Loss: + Rs 31/share
EPS: Rs 70.17
EPS Returns at current stock value: 7.17%
P/E Ratio: 13.95 v/s industry average of 17.02
P/B Ratio: 1.47
Fair Valuation as per Experts: Rs 1150
My Stop Loss: Rs 940
My View: To accumulate in Staggered manner till Rs 1000
2. ONGC: As i mentioned that ONGC will benefit from the recovery of crude prices. ONGC is included in the Asia Index joint venture between BSE and Dow Jones, which is a good news for the stock.
My Purchase Price: Rs 305
Average Purchase Price: Rs 305
Current Profit/Loss: + Rs 7/share
EPS: Rs 20.72
EPS Returns at current stock value: 6.64%
P/E Ratio: 15.10 v/s industry average of 10.57
P/B Ratio: 1.97
Fair Valuation as per Experts: Rs 450
My Stop Loss: Rs 298
My View: To accumulate in Staggered manner till Rs 350
3. L&T (Larsen and Toubro): All the rating agencies and analysts are bullish on this stock. Being an infrastructure company, it will benefit from infrastructure focus. Also, it is entering into Defense sector and Govt of India has decided to focus and promote Defense manufacturing in India. Normally i don’t buy stocks whose P/E ratio is > 20. L&T is the only exception. The stock is not cheap at current levels, but i only bought on the merit of future growth potential.
My Purchase Price: Rs 1663, Rs 1685 and Rs 1724
Average Purchase Price: Rs 1696
Current Profit/Loss: + Rs 17/share
EPS: Rs 54.45
EPS Returns at current stock value: 3.17%
P/E Ratio: 31.54 v/s industry average of 18.30
P/B Ratio: 4.78
Fair Valuation as per Experts: Rs 1900
My Stop Loss: Rs 1600
My View: To accumulate in Staggered manner till Rs 1750
4. Coal India: Coal India is world’s 6th largest coal mining company. With a mission to provide 24X7 Electricity, the output of coal is all set to increase in coming days. Secondly, this company has a monopoly in this sector. All the rating agencies and analysts are bullish on this stock. I am not expecting any immediate returns from this stock. It can deliver returns in long run
My Purchase Price: Rs 382, Rs 398 and Rs 407
Average Purchase Price: Rs 398
Current Profit/Loss: – Rs 4/share
EPS: Rs 21.18
EPS Returns at current stock value: 5.37%
P/E Ratio: 18.63 v/s industry average of 14.69
P/B Ratio: 15.15
Fair Valuation as per Experts: Rs 450
My Stop Loss: Rs 370
My View: To accumulate in Staggered manner till Rs 420
5. ICICI Bank: ICICI Bank is India’s largest Private sector bank. Though most of the analyst’s Top stock tips are Axis Bank and YES Bank but i selected ICICI Bank. It’s a BUY Call from all research agencies. The valuations of ICICI Bank are quite appealing. I avoided YES bank because of a tussle in top management. Axis Bank is tired because of the long rally and is currently taking a breather.
My Purchase Price: Rs 289, Rs 295 and Rs 304
Average Purchase Price: Rs 299
Current Profit/Loss: + Rs 5/share
EPS: Rs 56.43
EPS Returns at current stock value: 18%
P/E Ratio: 15.83 v/s industry average of 19.77
P/B Ratio: 0.48
Fair Valuation as per Experts: Rs 420
My Stop Loss: Rs 275
My View: To accumulate in Staggered manner till Rs 330
6. Infosys: It’s a Bellwether stock. I am not expecting any immediate returns from this stock. It can deliver returns in the long run. Among all IT stocks, the technical and fundamental valuation of Infosys is quite lucrative to buy.
My Purchase Price: Rs 1003 and Rs 1011
Average Purchase Price: Rs 1006
Current Profit/Loss: – Rs 3/share
EPS: Rs 159.55
EPS Returns at current stock value: 15.90%
P/E Ratio: 19.92 v/s industry average of 20.99
P/B Ratio: 2.39
Fair Valuation as per Experts: Rs 1250
My Stop Loss: Rs 950
My View: To accumulate in Staggered manner till Rs 1100
6. Dewan Housing Finance Corporation (DHFL): With the focus of Govt on Housing for All by 2022. I am of the opinion that NBFC stocks will perform well. Among HDFC, LIC Housing Finance, and DHFL. I shortlisted DHFL because it is the cheapest among all with strong growth potential.
My Purchase Price: Rs 392, Rs 425 and Rs 426
Average Purchase Price: Rs 409
Current Profit/Loss: + Rs 21/share
EPS: Rs 42.61
EPS Returns at current stock value: 9.88%
P/E Ratio: 10.12 v/s industry average of 27.51
P/B Ratio: 1.75
Fair Valuation as per Experts: Rs 700
My Stop Loss: Rs 375
My View: To accumulate in Staggered manner till Rs 450
My Views on Popular Stock Tips
I will share my views on popular stock tips over this weekend. Watch out this space for more details.
This is my existing portfolio and i will not say that these are Stock Tips. I will keep adding more sections in the post. I am planning to include details like Stocks offloaded by me, Hits and Misses & my views on popular Stock Tips from analysts and the research agencies.
Disclaimer: I have invested in all the shares under section My Stock Portfolio in an individual capacity. The objective of this post is only to create an awareness.and educating investors about the Subject matter. The views and opinion expressed on this website are my personal views and is NOT an investment advice/Stock Tips whether to buy, sell or hold the shares of a particular stock. All investors are advised to consult their investment advisor and/or conduct their own independent research into an individual stocks before making any decision. I am not responsible for any loss or implications arising out of any decision taken by the readers after reading my post. I also advise my readers not to fall in the trap of stock tips from unknown sources.
Stock Market investments are a HIGH Risk investment and investor carry the RISK of losing principal invested. The views shared by me are not Stock Tips or recommendations. While doing my own research i do go through the stock tips shared by the analysts and experts. For each of the stock tips, i do my own research. I also try to find out the reasons for stock tips recommendation for a particular stock. The title of the post is Stock Tips – My Stock Portfolio which implies that Stock Tips which are part of my stock portfolio. I critically evaluated these stock tips before making any decision.
For the queries on NIFTY stocks, you may leave a comment in the following comments section. As i mentioned that i only follow NIFTY stocks therefore i may not be able to comment on any other stock. All the comments are my personal views and cannot be viewed as Stock Tips or recommendations. I suggest readers to consider trail comments as my personal opinion instead of Stock Tips which is not binding on readers.
Copyright © Nitin Bhatia. All Rights Reserved.
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