Sudarshan Sukhani of o2anaytics.com believes that the MRF stock is still not overpriced, and there’s certain upside in the next few years. The expert said that MRF has been an outperformer for the last 20-30 years. In conversation with CNBC TV-18, he said, “ MRF has been a big rewarder for shareholders since time immemorial, I mean for the last 20-30 years. It keeps on rewarding investors”. He suggested the investors to hold on to the stock as it has outperformed the benchmark in this bull market, and they can expect much higher prices in the next 2-3 years. The MRF stock has indeed been a multibagger for the investors. It has returned 45% in year to date terms. In the same period the S&P Bse Auto Index is up by 22%. The ticker has more than doubled in the last one year, with returns as high as 108%. The tyre-maker is set to announce it’s first quarter results for the period Apr-Jun 17 on Friday, August 4th. The stock was trading at Rs 69,446 on NSE on Thursday afternoon down by nearly 2% since the previous close.
The expert stock advisor also suggested to exit from the JM financial stock, as the brokerage stocks have run-up in the recent past. In the same conversation, he said, “ Brokerages have seen a stupendous run-up, that run up can lead to months of consolidation. It’s better to stay in good quality stocks”. In fact, the stock has seen a whopping 81% return in year to date terms. In comparison, the benchmark Nifty Financial Services is up by 38% in the year. The stock was trading at Rs 123.3 on NSE this afternoon, up by more than 2.4% since the previous close. Sudarshan Sukhani advised the investors to remain in the financial services area, and switch to private banks like HDFC bank, ICICI bank or Axis bank.