Watch the interview of Gaurang Shah of Geojit BNP Paribas Financial Services who shared his readings and outlook on specific stocks and sector & Pankaj Mathpal, CFP, Managing Director at Optima Money Manager Pvt Ltd answered few personal finance queries.
Below is the verbatim transcript of Gaurang Shah's interview with CNBC-TV18:
GMR Infrastructure
IVRCL and GMR Infrastructure including GVK Power are some of the stocks which are first of all traders favourite and secondly they are over owned and in terms performance quarter-on-quarter (QoQ) it is a disaster. So, let us hope and pray that the steps taken by the government does materialise at ground level. In my view one can just hold out GMR Infra at the moment; don’t add anything. Our target is about Rs 30. So, at best what I would advice is at higher levels lighten up positions and in infra Reliance Infra is something – as a disclosure we have a positive coverage –we believe the downside extremely protected and with 18 months time horizon we have a price target of Rs 720 on Reliance Infra.
TVS Motor
TVS Motor Company has over the last six months, one year, has given a stellar set of returns when you compare it with the larger boys like Hero Motocorp or Bajaj Auto and we believe that the run-rate of this performance even in terms of month-on-month sales numbers is going to be far superior than what we have seen from the large players. You have an uptake in terms of automated scooter segment wherein their launches have occurred very well with the masses. In the motor cycle segment, new launches lined up and in three wheeler segment, they have also launched a particular product in the light commercial vehicle (LCV) category. Add to this, you have a tie-up in place with BMW motor-cycles with TVS Motor-cycles and wherein they are going to launch some 500cc and 350cc motor-cycles and this whole sales and after-sales service is going to be dependent with TVS Motors. If I keep these triggers in to perspective and of course the recent correction wherein the stock is trading close to about Rs 260-270 odd levels, my understanding is that the downside is extremely protected but one needs to have a longer time horizon and about 340-340 plus should be target with one year plus time horizon.
Axis Bank
We have a positive coverage from our side on Axis Bank. In terms of quarter on quarter (QoQ) performance, the quarter gone by if you do the comparison between ICICI Bank and Axis Bank, likes of both large private sector banks, Axis Bank has beaten ICICI Bank because for ICICI Bank the numbers are extremely disappointing and we have seen the kind of correction that we are witnessing on the counter of ICICI Bank. One may hold on to Axis Bank, do not be in a hurry to sell it off. For a one year plus time horizon our initial targets are set aside to Rs 630 but in case if the numbers are something to go by and extremely positive then these targets would be revised upwards and at current levels close to Rs 540 odd in case if somebody wants to re-enter the counter afresh I would definitely advise that.
Bharat Electronics
It is definitely a little bit disturbing with the kind of knock that some of these stocks likes of BEL, BEML had seen. The excitement is justified but the reality is that for these companies to work on the order, it will take anything between one and a half to three years because first of all they have to make a phototype, which has to be given to the defence. If it is according to those specifications, it is only after the successful operations will the defence give orders to the respective companies. One should hold Bharat Electronics (BEL) with a longish time horizon and if one is running out of patience then my advise would be to on rallies sell off BEL and look at something like Larsen and Toubro (L&T) because L&T has got a diversified play, it is into capital goods, engineering, infrastructure and defence. So you have a mix of good four products and Rs 1,800 is the current target that we are working on L&T.
Disclosure: Analyst has no personal holding in the above stocks but the recommendations are gone to the his clients.
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