Mehraboon upbeat on HZL, Emami; says sell Asian Paints

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26 Aug, 2025 12:21

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In an interview to CNBC-TV18 technical analyst, Meharaboon Irani, Nirmal Bang Securities shared his reading and outlook on stocks and sectors.

He has a sell call on Asian Paints because at the present valuations there is no money to be made.

Moreover, he thinks one should remain invested in the IT space. He also suggesting picking up stocks like Hindustan Zinc, Emami but is wary of banking space for the next two quarters.

More than the numbers it is the valuation of Asian Paints, we have had a sell call on the stock for over two quarters before the stock spread around Rs 4800 was the price where we said it is time to book profit.

It was our favourite stock for quite sometime and despite the numbers not being good the fact is we may not see too much of selling because investors in Asian paints don't sell stocks in a hurry especially when you don't have too many thing to buy in this market. So whenever you have an economic upturn Asian Paints also will start moving up one fine day but relatively it will not do very well because people will have more investment opportunities in the market.

Right now ther are not many opportunities and so investors are just not selling Asian Paints but at the present price putting an incremental money is not too much of money sense because the fact is you are not going to make too much of money from here in terms of percentage returns on your incremental money which you have put in.

So continue to avoid this stock despite the fact that it is a great company, there is good cash flow otherwise but at the present price at the valuation at which it has I don't see money being made.

All the IT companies caught the eye. Possibly Tata Consultancy Services (TCS) and today the fact is most of them have run-up sharply and some of them have reacted. MindTree reacted little bit after the results, TCS is still reacting.

So, if there is some correction in these stocks then I would definitely be enthused to buy it. I think they have gone up too sharply but IT is a sector to stay at and I think this is a space to possibly remain invested in and one can also put in incremental money because there are not too many alternatives in the market for investment.

We discussed Hindustan Zinc a month back when the price was around Rs 120-125 and we feel it is a clear ride till Rs 165-170 as and when this deal happens. People are discussing Rs 150-155 but even from the present level it is definitely a pick.

Emami is another interesting stock, margins have improved at a time when quite a few FMCG companies margins could come under little bit of strain that is what the previews as far as results of the consumption space indicates. But Emami numbers were at number two.

Federal Bank I would give it a clear pass, the resolution announced is fine but at the end of it I think the entire banking space could be wastage of time for the next two quarters.