Hindalco, ICICI Bank, Tata Motors safe bets: PN Vijay

Hindalco, ICICI Bank and Tata Motors are safe bets, says PN Vijay, Portfolio Manager, www.askpnvijay.com.

Vijay told CNBC-TV18, “If one were to want an alpha that’s not very difficult, I think there is still some value left in metals, we have had a big run up in banks and we are getting some run up in real estate. But frankly I am not so sanguine about real estate picking up that fast.”
He further added, “Infrastructure also there are good buys so straight away I would say Hindalco Industries, which I think we have seen a lot of firming up of copper and aluminum prices and Hindalco is improving its capacity substantially. So, Hindalco is ofcourse large cap but it can offer you great benefits and there are many like that. Even in private banks I feel that with the index at 5650 Axis Bank should not be Rs 1120 it should be a lot higher and it’s not had the type of run that an ICICI Bank or a Yes Bank or a IndusInd Bank has had and so Axis Bank is another blue-chip that can give you a great alpha, Tata Motors for example can give you a much higher return than the index. So, these are all fairly safe stocks where you can still get an alpha of about 10-12 percent vis-à-vis the Nifty.”
“We had a huge rally in cement contra to the market itself. Most of the cement stocks have heavily out performed the index in the last 12 -15 months. I don’t know if it is sustainable. I would imagine the new gush of rally in this bull market which is going on with some corrections, I would be more in metals, in infrastructure, banks, automobile, capital goods etc and then going on to real estate. So I don’t see cement as a space, the valuations are not very enticing more; Cement is a space giving us a great alpha."