Avoid Dhanlaxmi Bank, look at Goa Carbon: Prakash Diwan

Prakash Diwan of prakashdiwan.in told CNBC-TV18, "I do have Dhanlaxmi Bank in part of the portfolio from a long-term. We have seen such a lot of loss of faith in the management and this overhaul hasn’t helped. Unfortunately, the bank has lost out in terms of market share where it had a fairly significant presence in the traders segment and that was the profitable business to be in but they have completely been out of that.""If somebody like KKR were to buy into this bank it really doesn’t change the fundamentals so dramatically and no doubt it just helps add up to the capital of the company. So, I don’t think it is a great long-term change which we are looking at.""Goa Carbon is a company that is in the right space because carbon black the way some of the manufactures, other manufacturers have done so well, has really done well. You could look at Goa Carbon but it is shot-term quite a bit, so the risk reward is maybe not as great as some of the other players.""There is another company in that space you can look at in that space is Oriental Carbon and Chemicals, probably you could check that out as well. That is a great space to be in and constant a low petroleum prices is also an advantage that could continue for them. That could be a long-term bet. However, Dhanlaxmi Bank is definitely an avoid at this point," he said.