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Last Updated : Aug 25, 2015 11:19 AM IST | Source: CNBC-TV18

Here are some stock picks from Kunj Bansal

Watch the interview of Kunj Bansal of Centrum Wealth Management with Latha Venkatesh & Sonia Shenoy on CNBC-TV18, in which he shared his reading and outlook on market and specific stocks.


Watch the interview of Kunj Bansal of Centrum Wealth Management with Latha Venkatesh & Sonia Shenoy on CNBC-TV18, in which he shared his reading and outlook on market and specific stocks.

Below is the verbatim transcript of Kunj Bansal's interview with CNBC-TV18

SKS Microfinance

"What happens is typically as an investment strategy when we have such sharp corrections, we should look to buy high beta stocks and vice versa. So if somebody is looking to invest in market when the markets have risen or are holding steady then one has to look at buying low beta defensives."

"Because of the correction, yesterday's 10 percent fall in SKS Microfinance has arisen between its fundamentals and the valuation. At its high, the stock was almost close to Rs 600-590, it is 52-week high. From there now it is down about 25 percent to Rs 450-440 level yesterday. Return on asset for this company is closer to 5 percent," he said.

"We have public sector banks which are at 0.4-0.5 return on assets, we have private sector banks 1-1.5 closer to 2 in some cases, we have non-banking financial services (NBFCs) in the range of 3-4. Here is a company which is at 5 and a price to book of 5 has corrected to 3.5 and that is the reason to recommend a buy."

Ratnamani Metals and Tubes

"This is the best time to buy Ratnamani Metals and Tubes because this is where you get money. The stock is down from the peak of Rs 800 to now about Rs 580 yesterday and it is a company, which makes about 17-18 percent EBITDA margin, a zero-debt company, net cash company, return on equity (RoE) closer to 20 percent and in the last few quarters growth was an issue but has clearly been picking up. Its order book has been growing, the softer commodity prices will help although part of it has to pass. So these are the stocks wherein one get opportunities to buy in markets like these."



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First Published on Aug 25, 2015 09:45 am
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