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if you have seen the prices having corrected and even if the open offer rs3 gold comes now or maybe the preferential allotment because I do not think the company need too much money for making a preferential allotment because if they want to ramp up their stake to 75 percent, the huge infusion will take place. So even if the open offer comes in, I do not think that will be seen too attractive.
Therefore, fundamental prevails more over this expected news flow of Diageo increasing its stake to 75 percent stake in the company. So I wouldn't be playing long on the stock just on this news, as I said it has been floating in the circle for about 12 18 months.Sonia: Any thoughts on how investors can approach Delta Corp from here on?A: Apart from demonetisation the results are seen to be flat,
in fact on taking year on year (YoY) call there is no point in taking a quarter on quarter (QoQ) call because Q2 is always seen better and there is no point in taking a QoQ call. Therefore, on YoY the stock has shown flat performance and if you want to see half glass full probably one can argue that in spite of demonetisation we have seen flattish kind of performance on the company,
but I agree that this result will not cheer the market and the kind of run up we have seen after the stock having corrected to a level of about Rs 100 and bounce back may see the profit booking but this stock maybe meant for medium term investors, those who have been keeping a view of about six eight months but near term weakness may be seen but I am not so disappointed with the numbers as I have said that if you take on YoY basis,
the results are seen flattish which is not seem to have been impacted so much by demonetisation.Anuj: Are you recommending your clients to subscribe to Central Public Sector Enterprises (CPSE) exchange traded fund (ETF) follow on offer?A: There are two things. One, CPSE ETF have rewarded very well in the past. Second, there is a discount of 5 percent. So those things are attracting the investors. Third,
those who are looking for mutual funds, because the larger weightage in this basket, Oil and Natural Gas Corporation (ONGC) and Coal India carry maximum weight and we are keeping neutral stance on both the stocks because I am not keeping positive stance but the kind of liking which people in fact they go by the past track record and those who are looking for mutual fund investments, will be getting an upfront discount of 5 percent.
August 15, 2020- -
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