Here are Rahul Arora's few investment ideas

In an interview to CNBC-TV18's Latha Venkatesh, Sonia Shenoy and Anuj Singhal, Rahul Arora, CEO, Nirmal Bang Institutional Equities and Abneesh Roy, Associate Director of Edelweiss Securities shared their readings and outlook Jubilant Foodworks. Rahul Arora also spoke on various stocks.Below is the verbatim transcript of Rahul Arora's interview to Latha Venkatesh, Sonia Shenoy and Anuj Singhal on CNBC-TV18.Latha: What is your houseview on ICICI's insurance company, is that something that you would recommend to investors?A: Yes, we haven’t initially formally released a note but our retail team has. We do have a subscribe on the issue. At the lower end of the price band particularly it looks fairly attractive. I am not sure how much of the embedded value is already captured in the ICICI Bank stock at this point in time but our retail team definitely does have a subscribe in the long-term view on that stock.Sonia: What more are you bullish on in individual stocks?A: The fact is that the monsoons at least in the initial period have been pretty favourable, in the auto space there are two names that we like. One is Swaraj Engines and the other is VST Tillers. VST Tillers is a recent NSE addition. Currently at about 40 percent capacity utilisation, so we don’t expect the tillers or the tractors side to see a substantial capex over the next three-four years. It is a free cashflow generating company, very strong margin profile.Sonia: It has seen a pretty big run up, up until now, so you think that a lot of the juice is out or is there more scope?A: It is still coming to you at 16-17 times FY18 earnings. So much like Swaraj Engines -- these companies are going at mid-30s return on earnings (ROEs), return on capitals (ROCs) with very strong margin profiles. So I think there could be a case of rerating even from here. Swaraj went from Rs 850 to Rs 1,250 just on the news on the monsoon, so did VST Tillers. However, the franchise is very strong on both those counts. So those are two spaces that we like and in pharmaceutical, we are pretty positive on Cipla and Dr Reddy's at this price.Anuj: One of the stocks that you identified in 2014 was V-Guard and it has had a v-shaped rally. How would you look at the stock now, still bullish?A: If I was to initiate as on today, I cannot put a buy on it because it has crossed 30 times FY18 earnings but if you are an institutional shareholder or even a retail shareholder, the stock has been a multi-bagger, I see no reason to sell it because it is still -- Havells is coming to you at about 33 times one year forward, V-Guard is coming to you at 30 times. The fact is that non-south business has started to pick up for V-Guard -- if you have the stock, I see no reason to sell it. It has been a fantastic franchise, the product portfolio is expanding and if you are ready to give Havells 33-34 times, I had pretty much put it on par, so I wouldn’t put it beyond me to see another Rs 50-60 on the stock with a one-year horizon.