When the market is in an era of fluctuations and uncertainty, the investment made without thinking can sink your money.
In the Corona crisis, experts are thoughtful and are advising to invest only in stocks with good and strong fundamentals. When the market is in an era of fluctuations and uncertainty, the investment made without thinking can sink your money. There are many companies listed on the stock market, which are expected to remain under further pressure. There are many such stocks, which are expected to remain under pressure. Or you can say that it may take time for them to get out of the pressure of lockdown. At the same time, there are some companies, whose forward outlook looks weak on the basis of quarterly results. Experts are also advising to stay away from such stocks or sell them. Here we are alerting you of some such stocks in which investing money can be a loss deal.
The fourth quarter results of India Cement have been disappointing. The company’s EBITDA has fallen by 59 per cent on an annual basis. EBITDA / ton remained at Rs 289, while it was expected to be Rs 539. The company’s profit has been affected by the weakness in the infrastructure segment. The debt on the company has also increased by 240 crores to 3630 crores. The company’s profitability is expected to remain weak even further. Although the increase in cement prices has increased the expectation of management, but the company may remain under pressure. Brokerage house ICICI Securities has a sell recommendation on the stock with a target of Rs 65 and brokerage house MK Global Rs 69. The stock closed at Rs 125 on Thursday.
Union Bank of India
Union Bank of India has incurred a huge loss of Rs 2500 crore in the fourth quarter. While other income has been strong due to treasury gain. Even after that such a huge deficit is weakening the outlook of the bank. The bank has also increased provisioning for NPAs. The bank is to be merged with Andhra Bank and Corporation Bank. The asset portfolio of the bank remains weak. Gross NPA is 72 basis points improved on a quarterly basis, but it is still 14.1 percent. Asset Quality Risk is associated with the bank. In view of this, brokerage house MK Global has advised sell in the stock with a target of Rs 26. Right now the share price is around Rs 33.
Glenmark Pharma has a good rally from its March low. The stock has reached Rs 470 from the price of Rs 161. That means about 190 percent rally in 3 months. The stock rallied further after the approval of Favipiravir (Fabiflu) from the Drug Controller General of India (DGCI) to treat Corona. But this rally is not seen going forward. There is a question about how much private medical practitioners would rely on it without a complete clinical trial. At the same time, in the case of efficiency and back up, Remdesivir is seeing an edge over Glenmark’s medicine. However, through Favipiravir, the company will definitely be able to generate some revenue. But the stock will not get much benefit from it. Brokerage house Prabhudas Leeladhan has a sell recommendation on the stock with a target of Rs 257.
FY20 has been an eventful year for Mindtree. There was a change in the management of the company this year. Acquired by L&T. Many top officials left the company. He came to the position of officer of L&T Group. At the same time, due to the lockdown, the company has also admitted that uncertainty has increased. It may take some time for the company to recover from the slowdown. Brokerage house Dolat Capital has a sell recommendation on the stock with a target of Rs 840. The stock closed at Rs 916 on Thursday.
(Note: Here information is given on the basis of the report of the brokerage house. Financial Express Online has not advised to sell the shares. Before taking any action in the stock, please consult the expert at your level.)