In an interview to CNBC-TV18, Deven Choksey, MD of KRChoksey Investment Managers shared his readings and outlook on specific stocks and sectors.
Below is the verbatim transcript of Deven Choksey's interview to Latha Venkatesh, Sonia Shenoy & Anuj Singhal.
Sonia: The acquisition made by Motherson Sumi Systems is expensive but the company that they have acquired has had a good track record. What would your view be as an investor?
A: On the face of this acquisition, Motherson Sumi is moving into a larger league; catering to a segment like rolling stock is going to an important one because this company is having an expertise to electrical distribution system to commercial vehicles as well as rolling stock, which is a railway business. This is going to be an important play for Motherson Sumi.
However, back home, we are going to see a larger amount of growth tractions happening in the railway segment and with the commercial segment revival and agri segment is also showing a good amount of revival, these areas could help to bring the technology back home and make the acquisition working for the domestic market as well.
Fortunately it's a profit making company in the Euro Zone and that is not going to disappoint the investors, as far as Motherson's investment goes and that is why I believe that the acquisition could possibly be accretive on the bottomline as well, maybe some more details at some point of time and we could calculate the valuation impact coming up to Motherson Sumi but on the face of it, it appears to be decently calculated acquisition that the company did.Sonia: The list of earnings that have come out so far, anything has caught your eye?
A: A couple of companies have shown remarkably good performance and of course in the banking space particular IndusInd Bank and Yes Bank have come up with a convincing set of numbers. It gives the confidence that the banks are moving on a right track with around 30 percent kind of growth coming in. This gives a bit of confidence that an economy which is trying to recover, these banks have shown relatively good performance.
On the other side company like Sterlite Technologies came up with good set of numbers and this is going to be a game changer business model that the company has built-in given the fact that we are having larger amount of capacity expansion coming in for the broadband side, the company has very well positioned itself with the capacity in the optic fibre and optic fibre cable business.
However, along with that some of the other areas like smart cities, where the company has got decent presence; I feel that they have got good show to talk about. So, I find some of these companies are relatively better placed in the earnings.
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