Neeraj Deewan of Quantum Securities is of the view that one can buy JK Tyre and Industries.
Neeraj Deewan of Quantum Securities told CNBC-TV18, "Since July, even when the markets have corrected, people who have investing in midcap are still smiling because midcaps have really done well. So there are stocks in the auto ancillary which we had spotted earlier something like a Minda Industries or Shivam Autotech which has done well. The other stocks also like Munjal Showa which is dependent on two wheelers and with the sales in this festive season improving, Munjal Showa can be one which is still trading at a good valuation which is among our buy list."
"Even some of the tyre stocks which had corrected because of pressure from China. So, JK Tyre is one of them which has more proportion coming out of radial so that is improving their margins. So, that also is in our buy list. Motherson Sumi has seen an improvement, it has actually come up after the fall that we saw. However, we still continued to be positive in the stock and we can still see upside from the current level," he said.
"Even in the PSU banks, we have taken our coverage in something like Syndicate Bank where we feel the stock is really cheap and this being one of the best asset quality as far as gross NPA is concerned. There have been other stocks like Bajaj Finserv which insurance deals are now happening at 2-2.5 or 2.25x embedded value. Even after we took a value of 1.6-1.7 you are still getting at 10 percent upside to the stock. So, if something is going to happen to the valuation as far as insurance is concerned the stock is also good with a six to eight months perspective from these levels."
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