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  • Category: Stock Market

    Should Ashok Leyland shares be sold after getting over 60 % returns?

    Unsure whether to sell Ashok Leyland shares after getting good returns or hold them for further, better returns? Investment advice can be sought for through the expert answers below.

    I am holding Ashok Leyland shares since April 2015. I have bought a total of 200 shares by average and now my investment average price is 90 Rs. Currently, the share is trading at Rs. 146 (All time high) and as of now, I am having about Rs. 11000 as profit or more than 60 % return.

    I am a long-term investor and want to hold the shares, preferring Ashok Leyland shares in future, too, but the current profits attract me to book the profit.

    What should I do? Should I wait for a further upper trend or sell and book the profits?
  • Answers

    6 Answers found.
  • Shares of Ashok Leyland touched a 52-week high of Rs 145. It is a rise of 2.6 percent intraday.Thursday as broking house Angel Broking started buy rating on the stock with a target of Rs 163 per share.
    According to Angel Broking, the vehicle scrappage policy will see growth and company are set to capture additional growth opportunity. Up to 85% of money control users recommend buying Ashok Leyland shares. As such what I suggest you wait for another 2 or 3 days. Then by seeing the price, you can take a call.

    always confident

  • In share market, one faces such situations often. There are fluctuations in the market and uncertainties will always be hanging around so one will be attracted to sell one's holdings in shares which are going high.

    Share market is generally for long time investors who reap the benefits of staying in the market for considerably longer times.

    In this case, you can sell a part of the holding presently and keep the remaining with you for a long time. If due to some reason this share comes down you can again purchase it back at a lower value.

    Knowledge is power.

  • 1. Your average purchase price was Rs. 90/- per share in April, 2015. You have been holding these shares for almost three years.
    2. Ashok Leyland's today's closing price in NSE is Rs. 147/-. This means that the share is trading at 52-weeks high.
    3. However, brokerage companies are giving a 'buy' rating to this share. They are speculating that the market price of the share would touch Rs. 165/-.
    4. In view of the above position, I would advise you to resort to part selling. You can sell 50% of your holding. This would not have any tax implication and you will book handsome profit also.

    "If you are killed in action, you go to Heaven. If you win, you rule this Earth (as beautiful as Heaven). That is why, O son of Kunti, take a firm resolve and fight!"-- Shrimad Bhagwad Gita

  • My personal suggestion is, to sell them now if the prices are as you say more than 60%. Even by forgetting any dividend received , the return is more than 20 % average annual. You can use the profit to buy some other shares. In case the Leyland shares fall at a later time, again you can buy them and keep till they rise again.
    As share prices are subject to ups and downs and even subject to manipulations, you cannot sit expecting profit always.
    It is always better to 'book profit' when the net profit is reasonable . Turnover will fetch more return than keeping in stagnate position for very long. For a small investor it is always better to peg expectation at a reasonable optimum level of net profit( net of statutory and commercial charges).

  • It depends on your aims of holding shares and your investment portfolio. What many experts would do is have a core bunch of stocks that will be held over a long period, this would be something like their reitrement fund. These would be the blue chip stocks.

    Ashok Leyland is at it's 52 week high of Rs 147/share. There are at least 5 buy calls based two relevant news 1. on the phasing out of 15 yr old vehicles etc. 2.Along with this the Government is planning to give Rs 5 lakh for each old vehicle as compensation. If both comes through, the value of Ashok Leyland will shoot up as the firms would be planning quickly to upgrade their fleet. The conservative estimates are around 170. The other good fact is that month on month, this February the sales figures have gone up by 29%.

    I would suggest, closely follow the two peices of information that I have mentioned. If both turns out to be true, then hold for another couple of weeks.

    All of us know that we cannot time the share market but my view is the risk of a upside from here is more than the risk of the downside barring a global fall in equity market.

    Once you are comfortable, see the trend next week and do 'partial profit booking'. Whatever you do, don't keeping thinking about the time you existed and regret. Quickly invest the principal in other good equities.

  • Share market is generally an investment for a long-term and short-term undulations are to be ignored. However, in case of requirement of funds for a purpose people offload a part of their share.

    So the decision to sell is based on two factors - one is if the share has increased in value just due to speculations and not due to fundamentals and second is if someone is in dire need of money.

    Market experts will give different suggestions for selling of share at a specified time but the investor has to see the objective of his investment and accordingly take a decision.

    Thoughts exchanged is knowledge gained.

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