Harendra Kumar of Elara Capital told CNBC-TV18, "The entire pyramid in fast moving consumer goods (FMCG) will do very well, Marico, Dabur India, Emami and even Hindustan Unilever (HUL). The disconnect for people is that while they agree with the story they are not comfortable with the valuations, our view is that given the fresh impetus on business the valuations will keep getting expensive. So my guess is straddling the pyramid out there starting with HUL."
"One could also look at Hero Motocorp. The only overhang on the stock is the rural revival. If the monsoon picks up and the Jan Dhan is a big trigger out there per se, Hero Motocorp has a lot of valuation triggers plus growth triggers going for it. So that is a stock currently mispriced vis-à-vis all the auto pack," he said.
"On digital India, we have been big bulls on Tata Communications. The stock has no spectrum overhang, they have done their capex over the last three years, the debt is going to come off sharply over the next two years and data growth is going to be exponential from here which is going to add to margin growth. I think the stock is available cheap and will tend to rerate over the next three years and beyond that fiber optic plays like Sterlite Technologies, Bharti Airtel or all the other incidental players in value added services (VAS) and even for that matter media."
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
