IDFC reaches near Rs. 119.xx
This just gives you a surity that reaching 119 after a drop is easily possible and that if it declines under Rs. 110 start buying again. However, that being said if one can not wait till Rs. 110 you can always buy under Rs. 114. This should already be a gain of 5-6% for you in particular if you bought it recently (in less than a week) and if you bought it just about two to three months ago – a wonderful 25% from great lows of 84-95 Rs a share!
I would not really buy stocks right now and just wait for a good decline or focus on some stocks that are great but under valued.
Do not trust unknown companies too much and aim for the top 2 companies under valued.
I would really like to see HUL go up now (satisfy my belief) and IDFC go down (Satisfy my greed to invest more in the company). Remember IDFC is giving a 26% dividend or so (Rs. 2.60) and HUL is giving around 5-7 Rs.
Two companies I still continue to have faith on are HUL and IDFC. However with Unilever’s own large stage in HUL I can imagine some pricing control by UL. IDFC was a great buy back around 89-92 Rs. which I was personally able to take advantage of , however anything under Rs. 112 are still great buying opportunities. Does that mean IDFC is under valued?
-Written by Shivam Parikh