Moneycontrol
HomeNewsBusinessStocksHere are a few stock ideas from Rajen Shah
Trending Topics

Here are a few stock ideas from Rajen Shah

In an interview to CNBC-TV18, Rajen Shah, Chief Investment Advisor at Tradebulls Group shared his readings and outlook on specific stocks and sectors.

January 31, 2017 / 13:42 IST
Story continues below Advertisement

Your browser doesn't support HTML5 video.

In an interview to CNBC-TV18, Rajen Shah, Chief Investment Advisor at Tradebulls Group shared his readings and outlook on specific stocks and sectors.Below is the verbatim transcript of Rajen Shah's interview to Latha Venkatesh, Sonia Shenoy & Anuj Singhal. Sonia: Your thoughts on the telecom space. You think there is more juice left here or do you think that once the Idea Cellular-Vodafone merger, if and when it goes through, it could restrict profitability of the other companies like Bharti Airtel etc?

A: The consolidation of Idea and Vodafone is very positive for the industry because we will have three big players in the industry, so probably after a fierce battle, which is going on currently, maybe after a year or so the three could sit-down and work out a deal whereby no more blood battles. Therefore, it's positive. We also need to understand one thing that just as we have air and water without which we cannot do, three or five years down the line we will not be able to do without internet and data. However, we have seen Bharti Airtel reporting 50 percent plus drop in profit, the stock has not come down, in fact it has moved up. So rerating of PE multiples will keep the stock at a higher level and Reliance is the biggest story which is going to unfold, so we are extremely positive on Reliance in this space.

Latha: Is there any price at which you are buying Bharti Airtel and Idea?

Story continues below Advertisement

A: Bharti Airtel is 35 times rich and Idea has moved up 25 percent but Reliance at 10 PE multiple looks interesting.Anuj: What about non banking financial companies (NBFCs) because we have seen super strong numbers and the stocks have moved to 10 percent of their previous highs?

A: Bajaj Finance reported excellent numbers and for the past ten years it is growing at 40 percent plus compound annual growth rate (CAGR) and even at 30 PE multiple the stock is looking good. So NBFCs would continue to do well and our prime pick is Mahindra & Mahindra Financial Services which reported responding numbers but the focus of this government is going to be on agriculture and rural economy should do extremely well. Therefore, my bet in the NBFC space is Mahindra & Mahindra Financial Services.