According to Shahina Mukadam, Independent Market Expert, one may hold Lloyd Electric.
Shahina Mukadam, Independent Market Expert told CNBC-TV18, "Lloyd Electric is going to consolidate at current levels. I don’t see too much upside till the money comes in and basically what the management has said is that they will use it to repay debt. I would have been happier if they had said that we would be giving it out as a large dividend or something to the investors. At the same time I think the debt that is there is half what is the sale value that we are hearing for the consumer durable business. So, I would believe that once the money comes in there has to be some sort of a return to the investors.""Now what that return will be, will drive the stock price either up or let it consolidate at current levels. If they are to give a large dividend which is very possible with the type of money that is likely to come in then it would be a positive and we would see this stock rallying. Otherwise, I think they are going to go in for a buyback, the management just has about 56 percent equity stake, then I think this stock will consolidate at current levels only. I don’t see too much upside simply because the profitability and revenues is going to go down by two-third, so I would just say that hold and look to exit at any bounce," she added.Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.