S Krishnakumar says: “I think consumer durables, building material, home improvement have been spaces where in the next couple of years, we will see very substantial growth and we would see the benefits of margin improvements coming through as the demand situation improves. Even in a big bull market, we will have substantial corrections of 8-10% happening every year across the next five years also. But I think the point is to be invested and ride the growth in earnings and compound your wealth by about 15%.”
“Take some profits off on companies where price to earnings multiples are beyond 50-60 times trailing 12 months could be private sector defence contractors. It could be some of the newly listed stocks as well which are engaged in different businesses trading at very rich multiples. You could even consider adding specialty chemicals to that list where trading multiples are quite rich.”
“From a short term perspective, yes, there remains a lot of iuncertainty and which is why the Paytm stock has reacted in such a volatile way and one can only wait for things to normalise over the medium term, which is where we have maintained our buy on the stock.”
“In my opinion till the time Nifty Futures are trading about 19750-19800, it is on the way towards 20,000 plus market next year in two or three trading sessions. In my opinion, it is a buy on dips market. One can buy the current level. We have rather recommended a few points lower Nifty to our clients as well.”
“As the tone of the market is sideways, defensive stocks are outperforming and there is the traction which we can see. So, Glaxo can be bought at Rs 1640; Rs 1540 should be the stop loss and Rs 1,745 to 1,850 should be the target. The second one, Glenmark, is again from defensive space. It can be bought at Rs 793; Rs 740 should be the stop loss and Rs 900 to 1,000 should be the target.”