Let us know some stock ideas where investors and traders can make money in the short term and the medium term?
One of our top picks is which can be bought from 465 levels. I think Can Fin Homes fits the bill perfectly as it has very low delinquencies, its recoveries are very fast and they are seeing a lot of growth plus they have no problem of capital adequacy.
is well adequate and I think Can Fin Homes fits the bill perfectly to hit at least Rs 750 by may be before the budget.
I also like some of the OEMs like Motherson and Bosch. I think the rural market which has underperformed will start to see lot of growth now in January. Also, Hero and
from the two wheelers space can benefit as they have underperformed. Also one can look at the and, .
IDFC First has been one of our two top picks and we think that stock can still give you a 25% upside. Last but not the least in the large caps I like UltraTech and DLF.
Why have you gone with DLF? What is so unique about DLF and why not a Mumbai based real estate company?
I am backing DLF simply because 75% of their debt has been reduced. They have encashed on the commercial real estate space. If you come to Gurgaon you would see that there is no stone left unturned. They have capitalised and everything from plots where they have constructed floors to commercial real estate which is up and running and I think that now they will be in a very very sweet spot to encash on all that.
They have also said that they will be doing sales of around Rs 3000 crore or Rs 7500-8000 crore by the year end . So the demand for housing is strong, they are encashing on the brand value and same is the case with Godrej. So these two are pedigree names and these can continue to outperform in 2023.
Would you be looking at the QSR stocks which have seen such a big run up in the reopening trade?
is making money and there is no question about that. We had picked Zomato for our top clients at around 55 and we had told them to not see quarterly numbers for the next two years. .Zomato would be one of my top picks in this QSR space. I think they are really raking in the bucks and it is a matter of time before they turn profitable.
Are you convinced that the worst is behind for the fintech names likes Zomato, Nykaa and ?
No, no, these are not my favourite stocks. These are all FII favourite stocks. When they got hammered there was excessive selling by the private equity.
Some of the business are very-very smooth but the markets and the investors do not have the patience to sit through three, four, five, eight quarters.
Zomato is one stock which we think fits the bill perfectly. We are invested there as a disclosure and we think Zomato is the perfect combination of the fintech space. The others, we would wait. If you have trading rallies you can enter
at 450-500 and it can easily give you 750. But these are more of FII stocks where they will sell and buy and you will actually end up on the wrong side. So be watchful but if you have done your diligence then Zomato fits the bill.
Why is it that you are liking OEMs right now because they have already seen a fair amount of run up. What makes you so bullish and why is that you continue to like these names?
The disruption in China and Europe is going to take time whereas the demand for autos is very-very strong. Last month we saw the auto sales in Europe itself were at a two-year high and that means that a large part of the PLI or the shifting is going to come to India.
Bosh has been a relative outperformer, the numbers are strong and same is the case with Motherson. So I am sticking with the large cap names in this space and I think their underperformance will now turn to outperformance simply because the supply chain or the re-emergence of China and Europe will take time and India stands to benefit.
The likes of BHEL are trading close to their 52 weeks highs and we have seen a lot of traction within this entire capital goods space. So given that this theme is very hot right now what is it that you would like within this entire space?
I think it is time to take money off the PSUs, even the PSU banks. We have had a huge overweight on these stocks in the last six months but like I said you cannot run with the hares and hunt with the hounds. This is not the time to be so adventurous. I would still stick with four names ABB, Cummins,
and L&T. I would stay with these four pedigree stocks. BHEL was one of our top picks around that 35-40 levels but we are not chasing it at these levels. We are systematically booking profits across the board whether it is PSU banks or some of the defence companies.
Which are the railway and defence stocks that you would like?
We have had a coverage on HAL and BEL. I mean they have almost tripled from there. We think
is a very good play but look do not get caught up in these muddles. The rail budget always sees these stocks run far more than what their value is and then they tend to fade out. So like I said even though I have been very-very bullish on the markets, a touch of caution here, I am actually booking profits across the board.
If you have to double somebody’s money in two-and-a-half to three years which is a reasonable timeframe, what would that portfolio contain?
I would stick with the four large caps – UltraTech,
, and . These would be my four stocks which I would pedigree because I am not going to take risk at the current levels.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)