Buy DB Corp, Techno Electric: Kunj Bansal

Kunj Bansal of Centrum Wealth Management told CNBC-TV18, "If one looks at in the current market, there are two ways of investing. For the short term high risk momentum kind of investing or trading one has to go by the large caps and the multiple stocks that you have been telling us about the financials and the auto ancillary. The other is this is a market in which lot of stocks have moved up, so from a relatively better performance on the risk reward ratio basis and on the return basis, we have to see these stocks which have not moved up, but at the same time offer good financial growth in the time to come and valuation.""DB Corp is currently at around Rs 400 plus and is available at a valuation of forward PE of around 13-14 times and let’s keep in mind that the company has very good financials, closer to 30 percent earnings before interest, tax, depreciation and amortization (EBITDA) growth and almost similar return ratios return on equity (ROE) of around 30 percent," he said."For the last two years, the topline was almost flat in a single digit, but this quarter company has reported a top line of 20 percent and our expectation is that for the fully financial year 2017 as well as 2018, we should easily see 15-20 percent compound annual growth rate (CAGR) in the topline and similar growth in the bottom line, which is where it make attractive for this stock to buy." "Techno Electric which is a power EPC company has continued to participate in the market as well, but even currently available again at a PE of 14-15 times forward on a consolidated basis return on equity closer to 20 percent, if we take standalone EPC business return on equity closer to 30 percent and a growing space again next two years topline and bottomline likely to grow in high double digits and which is where the other recommendation comes."