Advice on edelweiss finance equity

#1
I have 952 shares of edelweiss financial at an average price of 160. Please suggest till when I should hold or when I should come out of it. It is touching almost 50% of my buying price☹️
 

Tejas Khoday

Co-Founder & CEO, FYERS
#2
I have 952 shares of edelweiss financial at an average price of 160. Please suggest till when I should hold or when I should come out of it. It is touching almost 50% of my buying price☹️
https://charts.fyers.in/d320cae4c2bc35b419a58b38d911c6e9/3ce76f7af1a90584b1567e5dde37c8a1.png

When did you buy it? The price action indicated that it doesn't have strength multiple times between October 2018 to July 2019. If you had purchased during that period, you had a 20-30% upside several times with false breakouts within the range and then the stock broke the 130-140 support levels. convincingly in August 2019. That was a screaming signal to exit if you were a short-medium term investor.

For long-term investors, they will need a lot of insight and conviction to be able to hold on to the stock. Edelweiss is the most diversified financial conglomerate in India. One will need to study their businesses well and the diversified income sources and risks at hand. There is bad news every other day and that's not a positive sign to stay invested especially in these times. Edelweiss's credit vertical is stressed with bad/doubtful debts and it is no secret that recoveries are a big issue considering they have purchased bad loans from other banks. I am not an expert on the ARC business but any company that is heavily leveraged and exposed to the corporate side is not in the best shape. It's not easy to know the inner workings of such companies/groups.
 
#3
Thank you for details. I am kind of person who believes in long term investments. So when It touched 130-140 mark, i didn't take my money out. As you mentioned, Edelweiss is one of the most diversified financial conglomerate in India, I believed that it will give positive return in 2-3 years. But I am now losing my belief.

Now next time, if it will have any 20-30% upside rise, I am planning to take out at least 25%.

Reading out your last section, I think you suggest not to wait more and take out the money with loss. :(
 

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