In an interview to CNBC-TV18, Deven Choksey, MD of KRChoksey Investment Managers shared his readings and outlook on specific stocks and sectors.
Below is the verbatim transcript of Deven Choksey's interview to Latha Venkatesh & Sonia Shenoy.
Latha: Is TCS going to have the strength to move up today?
A: I think rerating should be expected on two counts. One, positive and better than expected results from the company, which is suggesting that '17 and '18 could be better years for the company. Second, the MD & CEO of TCS is stepping up as Chairman of Tata Sons, so he would have higher ability to drive the business from TCS point of view as well being an executive chairman. Therefore, TCS could be rerated from current point and we may see 20-25 percent kind of an upside going forward in this stock over the next 15-18 months.
Sonia: How are you positioned on Reliance Industries ahead of its earnings?
A: One must observe few things - the refinery project is completing, have got the new feedstock - coke gasification project starting and starting to contribute into the business of the company. It holds the potential to improve margin significantly and that is where the lower raw material cost and better margins for the company is going to be the way forward for the next few quarters as we could see better performance coming in both on the volume side in refinery and as well as in factory chemicals they will have the advantage going forward and at the same time on the margin side because of feedstock changing, so conventional businesses of Reliance definitely contribute better going forward in the coming time.
However, at the same time Jio's commercial launch, which could happen in FY17-18, would start with a sizeable number of customers and that would be an interesting area to watch out as well. So we believe that good time is getting started for Reliance as far as FY17-18 is concerned.
(Disclosure: Network 18, which publishes moneycontrol.com, is a part of the Reliance Group.)