Ranbaxy, SBI, Power Grid look attractive: Bhat

Ranbaxy, SBI and Power Grid are looking attractive at current levels, says Dilip Bhat, Joint MD, Prabhudas Lilladher.

Bhat told CNBC-TV18, “In this pick and choose approach we have couple of stocks in mind at the moment; one is in pharmaceutical, Ranbaxy which appears to be pretty good slightly over 12-18 months. I think this is one stock which can go places. I think both in terms of quantum of growth in the net profits over next two-three years we think that it can be two-three times the growth in profits over next two-three years.”
He further added, “They have a lot of upsides in terms of the first to file opportunities. So Ranbaxy appears to be interesting from the current levels, of course there will be correction in between as the market corrects but this is a stock which can give a reasonably good return.”
“State Bank of India (SBI) is another stock which we feel which has good leg even in the short to medium-term. We feel that maybe the asset quality improvement or the deterioration in the asset quality which has stopped in the Q4 probably that kind of scenario which still continue in the Q1 so they can show a good surprise in the results so SBI is another stock which we feel is very good. Power Grid is another stock which is a very steady and safe story and still available within reasonable valuations. We see 18-20% bottomline growth over next two-three years and a reasonable RoE of around 17% so that’s another stock which one can have a look at.”