Prefer Hawkins Cookers, Nilkamal may test Rs 1275: Thunuguntla

Jagannadham Thunuguntla, Head Of Research at Karvy Stock Broking told CNBC-TV18, "This is that kind of market one should be very careful in selection even though market in general is looking phenomenally bullish. However, one should be careful in terms of getting the companies with less balance sheet debt as well as strong return ratios and EBITDA margins. So, Hawkins Cooker fits into that. It is very less on the debt as well very high ROE and ROCE upwards of 60 percent or so and household brand any which way. So, we like the story and if in the 7th Pay Commission there is a consumption wave unfold, it can be one of the beneficiaries.""The basic theme remains the same and as the basic consumption drives open up all these companies where they should beneficiaries. Moreover, offlate India have become brand conscious than cost conscious; meaning there by the companies with reasonably brand recall which should be having the advantage. Any which way Nilkamal is also having a good margins as well as retail profile new retail division of @home has started to come on track. So all in all, we are putting target price of Rs 1,275," he said."One should be bullish on Minda Industries with a price target of Rs 881 while Hatsun Agro has a target price of Rs 476."