Talking stocks: Buy PI Industries, Sell CDS

By G Chokkalingam Founder, Equinomics Research & Advisory

I am holding 3,300 shares of Pratibha industriesBSE 1.61 % at Rs 12.80. Should I hold or sell?

Sell the stock -the company's net loss in the latest quarter is more than its revenues. Now company is doing debt restructuring. Considering the debt of over Rs 3,300 crore and fixed assets of around Rs 700 crore as of March 31, 2017, it is doubtful whether the shareholders will get any significant benefit after settling lenders' money.

Talking stocks

I am holding around 5,000 shares of Tata Motors BSE 4.47 % at Rs 500 per unit. Is the stock worth holding for long term or should I shift to some other stock.

Considering lot of initiatives taken by the management and scope for the improvement of JLR business as the global economy is showing signs of improvements, it is quite possible to realise a target price of Rs 500 from the current levels.

I have 1000 shares of Opto CircuitsBSE 0.13 % at Rs 18 and 500 of MBL Infra at Rs 67. Please suggest if I should book losses or hold.

Sell Opto Circuits. Its balance sheet is under tremendous stress -while its annual sales were around Rs 215 crore in FY17, its debt was close to Rs 1,000 crore and total receivables were little more than Rs 10,000 crore.

Steep fall in revenues, substantial amount of money parked in intangible assets and huge debt on the book do not give adequate confidence in the stocks. Sell if there is any tactical recover of 5 per cent to 10 per cent in the stock price.

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