Buy Godrej Agrovet, Cochin Shipyard: Prasanth Prabhakaran

Prasanth Prabhakaran, Senior President & CEO at YES Securities told CNBC-TV18, "We started off January by saying that you should have an agri based portfolio and some stocks where you are going to see capex expenditure from the government over the next three or four years. So, one remains Godrej Agrovet, it is a strong buy from our side."

"We see a strong upside in the stock thanks to two things. One is that their main business which is their animal feeds business, they have built in capacity. There are at around 50 percent capacity utilisation and we see that going through at least 20-25 percent growth track on that side. Their other lines of businesses which includes crop protection chemicals, pesticides that they end up having, their dairy business and their poultry business all are strong segments for growth. So you have a mixture of consumption story plus an agri theme that agrovet continues to hold for the long term."

"Second one is a big capex story which will play out from around 2018- till around 2021. It is Rs 21,000 crore of capex that Cochin Shipyard is plying to build on that side and it is a strong defence play. It has an order pipeline. They have bided for approximately Rs 8,500 crore of orders that are there. They have a running book of approximately Rs 3,000 crore. A topline growth of anywhere between around 12-13 percent CAGR over the next two years and a bottom line of at least 14-15 percent is what we envisage on that side."

"Both the stocks are strong, holding it for the long term, no short-term buys at this point of time. We are a lot uncomfortable with the valuations that are there. Maybe on an overall portfolio I will still say you should have 3-4 percent protection bought for a long term for this year at least for the next 6-9 months," he added.