Posts Tagged ‘Bharat electronics

07
Dec
14

Booked profits in Bharat Electronics (BEL)

In my last post I had written about my recent buys (https://writingoptions.wordpress.com/2014/08/27/my-recent-buys/). I had mentioned about Bharat Electronics (BEL). It was clear beneficiary of composite FDI+FII limit being raised to 49 percent. Usually I don’t like PSU’s and don’t invest in them. I firmly believe they are inefficient allocator of capital. But BEL was a good trading buy at that point of time. Company had 5-6k crore cash on books, MCap was 16k crore and close to 1k crore of annual profits. Stripped of cash company was available at 10 PE.

Recently BEL has rallied sharply to hit high of 3140 on Friday(5th Dec) but closed lower at 2894. I think stock has moved too sharply and valuations are also not as attractive as earlier. I have booked profits in BEL for now and will look to re-enter at lower levels.

Disclaimer: These are my personal views and you should do your own due diligence before acting on anything written in this blog. Please take reasonable care while trading in options, especially while selling. I am not advising anyone to sell or buy options. My purpose of writing this blog is to highlight my trading strategies

27
Aug
14

My recent buys..

Indian markets are the second best performing market in 2014. BJP led NDA absolute majority in 2014 General elections has changed outlook for Indian markets. FII’s have pumped close to 10 bn USD in Indian equity markets since the beginning of 2014. It’s a shame that retail investors are not investing in equity markets the way they should have been. I have no doubt in my mind that we are going to see reasonably good run for Indian markets in the next 4-5 years. I have been consistently buying in the cash segment and stepped up my purchase after 16th May verdict. Some of my recent buys are:

1. Ashok Leyland – CV cycle recovery candidate.

2. Bharat Electronics – Composite FII+FDI limit hike to 49 percent in defence. BEL is the best proxy for it.

3. Crompton Greaves – On recovery path

4. Edelweiss financial services – Expecting strong earnings growth for next 2-3 years

5. Grasim – Cement sector exposure

6. Icici bank – Comfortable with valuations of icici bank among private sector banks

7. Jain Irrigation – Balance sheet repair, Agri exposure

8. L&T Finance holding – Trading buy

9. MCX – Sold some portion but still holding

10. Suzlon – Balance sheet repair and growth recovery

I have leveraged trades in Tata Motors Cairn India and Infosys. I have squared off Infy trade but still carrying Tata Motors trade. Cairn India is 2-3 months covered call trade. Given current brent crude levels I don’t expect Cairn India to rise sharply in short term.

Disclaimer: These are my personal views and you should do your own due diligence before acting on anything written in this blog. Please take reasonable care while trading in options, especially while selling. I am not advising anyone to sell or buy options. My purpose of writing this blog is to highlight my trading strategies




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