Ajanta Pharma

I have 200 shares of Ajanta Pharma bought at 1572. Should I sell at a loss or buy another 50 or 100 on dips?

 

Ajanta is very good stock but it is not cheap stock. it is at PE of 33.28 so chance of great shoot up is not there. Also pharma is not favoured by market at present. What other pharma stock you have in portfolio? GST stocks are going to shoot up now it looks like that.

 

I am actually a small investor, started investing in the last one month. The purchase of 200 shares of Ajanta Pharma was actually a mistake on my part. It being a mid-cap and a pharma stock ( I do not have any other pharma stock except Ajanta) I saw today that the stock was falling from 1585 and purchased 50 units at 1582 and gradually built up 200 shares with an average of 1572. It closed at 1564.My portfolio at present are mostly 5, 10, or 50 shares across Reliance Petro, Reliance Power, Reliance Capital, Reliance Infra, Bajaj Auto, Intellect Design Arena Limited, Tamilnadu Petro, and 500 shares of MRPL. MRPL was bought today at 67.80. My heavy investment in Ajanta Pharma has confused me, and although I know it is safe, I would like some advice on whether I should keep some/all of it, or sell, or purchase 50 more on declines. I can bear loss of 2k to 5k on Ajanta, provided it goes up to 1600 in the next 1 to 2 to months.Please help as to how I should react tomorrow.

 

If you are trader you must have stop loss target. If you are investor then how you can expect gain in such short period? Ajanta has given 228% gain in 2 year time. Return in 10 years is more then 1000%. Ajanta has good management, good product, low debt./ debt free, high RoE etc and will perform as compounding gains over long period of time. Dont be discouraged so easily. Or become trader and move in and out of stock with stop loss target.

 

Thank you. I was aware of the stop loss target, but was in a confused state of mind because of the huge amount involved. I also learned another lesson never to dive too deep. I should have purchased in lots of 10 or 20, instead of 50.