What to do with stock of Yes Bank and HDIL

At present many company shares are not doing well and they are all at low value only. The experts say the rates may increase after sometime. So at this time selling shares at a low price is not good.

See the history of the shares moment and how they are varying from time time. What is the maximum and what is the lowest during last six months and then you can take a decision.

I have gone through the record of these shares and I feel you can wait for sometime and there are chances for increase in the share value. But keep on observing the change in the value and then decide.

You should not be perturbed with the current prices of the shares. You are observing a surge in the of the values of shares Sensex currently is hovering around 41000. It is reflecting a healthy growth but even if some correction takes place shortly, it should not be taken seriously.
You may go through the past performance of these two shares namely HDIL and Yes Bank. I think these are the lowest prices being quoted currently but with the infusion of some capitals by RBI, the share prices in respect of Yes Bank may improve shortly.
However, you may mark of behaviour of these two shares for a couple of months and once it picks up to some reasonable price, you may sell the same so as to take up other shares related to Pharma, Infosys, TCS, SAIL, TISCO etc. The prices of SAIL, TISCO etc may escalate because of surge of demands.

Generally share market investments are made for a long time frame and the variations in small time period are not to be counted. There are many companies whose shares are quoting low at the moment. But you do not know when they come under the fancy of the investors and start looking up. So instead of booking heavy loses now it will be better to wait for some time before they start showing uptrend in their prices. Please remember that share prices are affected by the economic environment in the country and affect of Govt policies on a particular sector and that is the reason why share market predictions are very difficult to make. Let us see them in more details -

1. Yes Bank - In financial year 2018-19, Yes Bank had a net profit of Rs 1720 crores. Its earning per share was about Rs 7.5 which is adequate. Currently the quarterly results are not very good and let us wait for the results for the year 2019-20 before assessing it further. If you observe the last 52 weeks high/ low for this bank as well as some others then you will find that there is a decreasing trend in others also. For example Yes bank had this as 286/29 while other banks like SBI, Union Bank and IndusInd Bank had this high/ low as 373/244, 100/48 and 1835/1192 respectively. So downtrend is there though it is more in Yes Bank. Anyway at this juncture in my opinion we can not do anything other than waiting for some time to see the trend and hope for a favourable one.

2. HDIL - In the financial year 2018-19 HDIL made a profit of 96 crores and its EPS was about Rs 2 per share only. Presently it is not doing good as there is a low going in the home loan sector and it will take some time for HDIL to come back to its glory. The present share price is too low and there is no point in selling it either. So, we have to keep it for a longer horizon when things change in this sector.

In share market, one has to invest in a mixed lot which means that one has to invest in many different shares rather than a few shares. In your case as these two shares are not doing good so you can sell them and invest the amount in some other hood shares and hopefully you can get some profit there which can compensate the loss incurred in selling Yes Bank and HDIL shares. The alternative of keeping them for a long time is also not a surety that their prices will increase in future.