I purchased 15,000 shares of GVK Power and Infrastructure Ltd in December 2008 at Rs18. They have given me handsome returns, but the stock has been stuck at Rs45 or so since September. I want to hold the shares up to December. Should I? What are its prospects over the medium term? The company has a very opaque policy towards investors.
— Deb Bhattacharya
The stock is overpriced both in terms of earnings and valuation. However, technically it is showing consolidation. As per key technical analysis, there is a critical resistance at Rs53. If the stock crosses this level, then it has the potential to move up to Rs62-66. Since this is most likely to happen well within the time frame mentioned by you, I think it’s worth holding the stock.
I had purchased 60 shares of Future Capital Holdings Ltd at Rs720, 100 shares of Vipul Ltd at Rs171, and 350 shares of Shasun Chemicals and Drugs Ltd at Rs93. I am a long-term investor. Please advise me if I should hold, sell or buy more of these stocks?
— Charu Srivastava
I think there exist better opportunities in the market both fundamentally and technically, and you may pare part of your holding in favour of better stocks. Future Capital Holdings has a medium-term target of Rs243, while Vipul Ltd has a medium-term target of Rs56. You may continue to hold Shasun Chemicals and Drugs Ltd with a target of Rs64 in the medium term.