Hold YES Bank, Asian Paints: Mayuresh Joshi

Mayuresh Joshi of Angel Broking told CNBC-TV18, "One has to understand that YES Bank and Asian Paints are working in a very different environment. For YES Bank, specifically I mean all the banking mess that we have witnessed over the past so many quarters has been very resilient. Look at the asset quality, look at the capital adequacy, look at the market share gains that it is making on the current account and saving account (CASA), so on all counts it is gaining market share." "The loan growth has been exceptional and again the balance sheet strength is simply there to probably exploit opportunities once credit growth returns to its full potential. So, YES Bank again, I think time and again has been my recommendation to hold this stock. Though valuations at the current juncture looks a little bit rich, but it is a clear hold for investors holding it at lower levels," he added. "Similarly, for Asian Paints the kind of volume growth that the company has posted this time around and with the kind of cut that it has taken at decorative prices, my own take is that volume growth will still see a fillip going forward. Couple that up with and if good monsoons come through and our expected as one really assumes one can see re-painting demand come back in the big fashion in tier- III and tier-IV cities, rural areas, that is a huge impact in terms of how the topline grows." "Clearly, the home improvement segment is where the investment phase of the company is, so on the bottomline it is still in the red. Particularly, I think the segment is expected to do pretty well, assumably because of rural demand coming back and urban demand staying very consistent going forward. What happens with this is going to be very interesting and though valuations in excess of 42 times of FY'17 look a little bit stretched, my own take is that this stock is a premium stock. The numbers were fantastic in my opinion. Investors holding on to the stock should continue holding," he added.