Here are some stock picks from Prakash Diwan

Watch the interview of Prakash Diwan of prakashdiwan.in with Latha Venkatesh and Sonia Shenoy on CNBC-TV18, in which he shared his reading and outlook on market and specific stocks.

Below is the verbatim transcript of Prakash Diwan's interview with CNBC-TV18Harita Seating Systems

"The big upside in Harita Seating Systems could be the trigger, they have already started applying to the railways to get into the seating for all the Shatabdis and the chair cars. This is a huge replacement market waiting for that to happen and they have qualified for the first level but in railways you need to spend a few years to get that scale of order. So I am sure it was about that as well because that is a huge segment that they quickly move into apart from the auto."Steel Strips Wheels"The market is becoming very strongly bipolar now. You have the TVS Group company, which is Wheels India that has been always there as the market leader and Steel Strips Wheels (SSWL) has kind of gradually climbed up the charts with more and more orders from original equipment manufacturers (OEMs) particularly global play.""Though SSWL has been around for almost 13 years now, it is in the last five years that they have started introducing a lot of high technology variants because otherwise it is a very boring industry, it makes the rims and churn them in huge numbers, their capacity currently is about 16.5 million, they are ramping it to 18 million. It is not a big deal but where things could be different is that they have tied up with a company called Kalink which is from South Korea and this is the company which is specialised in making alloy wheel rims," he said."If you see most of the launches now, you get alloy wheel rims by default. It is part of the design, earlier you had to put in that after you bought the vehicle. So these are now coming along with the original passenger cars. So alloy wheel is going to be a big theme. The Koreans have invested money into this plant in Gujarat whereas this company hasn't put in any money. They are going to come in only with the distribution and marketing strength and once that scales up, they have got a huge aftermarket waiting for them in Europe particularly because European suppliers have gone out. It is up for the taking and SSWL is looking at that."He further said, "It announced capacity expansion after a long time, Rs 100 crore is what they have decided to raise through a qualified institutional placement (QIP) and 65-60 percent of their cost is raw material and that itself in the last six months has been so helpful. They have managed very decent margins. In fact, I feel they have under-reported margins, I don’t know how to figure that out but they have had a luxury of very soft input cost, they have grown about 28 percent this quarter itself in a tight market. Its book value is Rs 277-275 and is available at Rs 320-325. So it is a great company available at 11 times P/E trailing basis, you don’t get these kind of plays which are so strong on the product side.""I think it will probably get rerated once things look good but the caveat is that I think midcaps will see a little bit of correction in this month to a month and a half, there is a lot of meltdown that I expect to happen. Some of the quality stocks might not get the drubbing that you expect but we will always buy these at softer levels also."