Here are few stock trading ideas by Rajesh Kothari

In an interview to CNBC-TV18 Rajesh Kothari of AlfAccurate Advisors shared his reading and outlook on the market.Below is the verbatim transcript of Rajesh Kothari's interview to Latha Venkatesh, Sonia Shenoy and Anuj Singhal on CNBC-TV18.Latha: The way in which Idea is moving, we have seen this huge surge coming in Idea already, is there more juice or would you wait for the event itself?A: I think we should wait for the event because while the numbers of players will surely reduce post this merger, what is more important is the incremental capital expenditure plans for all the telecom players still remains very high. Therefore, the incremental return on capital employed still remains very low compared to what the valuations are right now suggesting. So while the movement in Idea stock is maybe because of ratio may work out in the future but incremental ROC, fundamental perspective is still not justifying the buy.Latha: Non-banking financial companies (NBFCs) had their huge big year in 2016 and then we saw profit taking. Once again stocks like Bajaj Finance are climbing, will you buy Bajaj Finance for instance even at current levels?A: What has happened is that post demonetisation, there were two major fears. One was the disbursement growth fear and second was the collection efficiency fear but most NBFCs commentary post results is reassuring. That is first important point.Second important point is that the public sector undertaking (PSU) banks, they have vacated one big space because of the capital adequacy issues and also the growth issue, non-performing assets (NPA) issue and therefore the NBFC as a space will continue to gain the market share from the public sector banking and that is one of the major reasons why the growth in most NBFCs if you look at the earnings growth, if you look at the disbursement growth, if you look at the asset quality is quite reasonable. So it is at 20-30 percent growth story even today and I think that is the reason why NBFCs continue to remains in limelight and we continue to like this space.Latha: Any cement stocks that you like?A: As a whole space, we are positive. Whether it is Shree Cement, we are holding JK Cement, we are holding JK Lakshmi Cement, so these are a few cement companies which we continue to like and as a theme over the next two-three years as incremental capacity is going to be lower, the incremental return on capital employed for players like Shree Cement is going to be much stronger compared to most other largecap cement companies.For full discussion, watch accompanying videos...