Sun Pharma a top pick: Dipan Mehta

Dipan Mehta, Member at BSE & NSE told CNBC-TV18, "We have been very positive on the entire pharmaceutical sector. Sun Pharma continues to amaze the markets with their quarterly numbers. In terms of business model, consistency of earnings growth, de-risking its entire operations and capturing the various opportunities in global pharmaceutical industry full kudos to the management. That remains our top pick within the pharma sector with usual disclosure that we have investments and recommendations. So that is one stock which comes to mind."

He further added, "Mahindra and Mahindra (M&M) has surprised the street and this entire business mix certainly seems to favour the company. When you have the four-wheeler market, the passenger car vehicle market or the SUV market going soft for them, they have seen that the farm equipment, tractors have done pretty well for the company."
"With a good monsoon in place and agricultural growth improving, a lot of revenues even in the passenger vehicle and the commercial vehicle side do come from the rural areas, so that should keep the momentum going forward for M&M. Valuation-wise it is certainly not that expensive."
"Tata Steel has come out with a good set of numbers, but this is a very volatile industry and although the management has done fantastic in terms of turning around its European operations and the Indian operations are certainly benefiting from higher volume growth. One does not really get a handle on what profitability will be there in the medium to long-term and the Returns on Investment (ROI) and Returns on Equity (ROE) continue to remain quite unattractive. So although valuation-wise it is on cheaper level, but in medium-to long-term whether it can really deliver shareholder value is a bit questionable."