Ask Mint | On investments

Ask Mint | On investments

I have bought Duncan Industries Ltd after reading that it had a loss of Rs6 crore this year, against Rs36 crore last year. I presumed it may be heading for a profit in the next three years. I have bought 500 shares at Rs12.25 per share. Is this a wise investment decision?

—Ashok Mirchandani

Duncan Industries Ltd is a loss-making company and has not been able to cover even operating cost. As a rule of thumb, such investments are not being considered wise, unless you have some extraordinary information. Based on fundamentals, I do not find anything exciting about this company. However, technically, it is in consolidation phase since early 2006 and has a resistance at Rs14.95. If it closes above this level with good volumes, then it may go up to Rs20.85. Untill something changes fundamentally, exit at this level.

I  have 100 shares of Nahar Sugar & Allied Industries Limited. I had sent the same for demat but it was returned stating that the company has been merged. Provide me the company details in which Nahar was merged to enable me to get my shares dematerialized.

—Ravinder Bhatia

Nahar Sugar and Allied Industries Limited was merged with Nahar Industrial Enterprises Ltd under the scheme of arrangement. The record date for such transaction was fixed at April 29, 2005. Under such amalgamation, three fully paid-up equity shares of 10 each of Nahar Industrial Enterprises Ltd, for every 10 fully paid-up equity shares of 0 each of Nahar Sugar were given. The company address is: Focal Point, Ludhiana, Punjab 141010; Tel: 91-161-2672592.

I am a regular visitor to . It gives a lot of ideas about Indian stock market. I have good quantity of Reliance Industrial Infrastructure Ltd. Can you suggest me whether to hold or sell this stock?

— Rukmanul Hakkim

You should hold this stock for now and may book profit partially around Rs2,900.

I have held stock of Dr Reddy’s Laboratories Ltd since inception. Appreciate your comments on its future prospects. Why it is sliding continuously?

—K. Sreenivasa Rao

I appreciate your concern. However, the entire pharma sector has underperformed the broader market, barring a few ones. Talking particularly about Dr Reddy’s Laboratories Limited, it witnessed good movement on Friday. However, unless it closes above Rs686, the stock will not be out of bearish zone. If you are a long-term investor, I think the stock will give you good returns. But in the short run, the stock will remain under bearish grip unless the resistance of Rs686 is crossed.

Answers are based on a technical analysis of the markets and individual stocks. The views expressed on this page are not the newspaper’s opinion and are provided for information purposes by Vipul Verma. Readers are requested to do their own research before participating in the stock markets. Neither the paper nor the information provider will be responsible for any outcome based on information provided here.