Not optimistic about market; want to conserve cash to buy quality stocks at cheaper prices: Dipan Mehta
Dipan Mehta, Director, Elixir Equities, says from a market viewpoint, he is not very hopeful or positive. Right now, he prefers to save cash. We are in the midst of a crucial earnings season and a significant event. On January 20, President Trump will take over. If there is more market volatility, especially with specific stocks, he would hold onto cash to invest in stocks that have dropped significantly and are strong businesses or have appealing business models.
What would you do with a stock like Kalyan Jewellers? It is down almost 11%. Is there any buying at dips which would emerge or is there just a case of falling knife and one should stay away till the time they do not figure out what is happening within the company?
Dipan Mehta: Kalyan Jewellers, the pre-quarter release was interesting. Amongst the entire peer group, they reported the highest sales growth and this particular wedding season has been good for the jewellery industry. Titan also came and all the other companies also came with very good releases pre-quarter where they gave the sales numbers.
Gold prices have moved up, so obviously that is getting reflected in their turnover as well. Valuations are still reasonable. The company has got a decent footprint to increase its stores and distribution network and they have made some foray into some online portals to try and sell jewellery as well. So, I am not negative on Kalyan Jewellers and I have not heard anything negative on the stock for it to merit this kind of a correction.
But on the whole, if
