“Talking about the stocks he definitely wants to be a part of, IT and banks are two sectors where we see strong traction. After seeing the underperformance of IT, in the next six to 12 months, things are looking pretty good and maybe HCL Tech is something we think is very well placed in terms of risk to reward. Also, negative on the commodity space and in particular, said Hemang JaniEquity Strategist & Senior Group VP, MOFSL.

Which stocks do you tell your clients to sell and exit and which stocks do you tell them to buy and double your position?
Commodities is a space where we are negative and we don’t think names like Tata Steel etc are going to do well. The whole cut in export duties has been a positive surprise for some companies but things are slowing down globally and China too has its own dynamics and worries and one has to stay away from commodity packages, especially global commodity companies. So Tata Steel would be at the top of my mind right now.

Also Read: Be careful, this is not the time to make big decisions in the market

Speaking of stocks you’ll want to follow, IT and banks are two sectors where we’re seeing strong traction. After seeing poor IT performance, in the next six to 12 months, things are looking pretty good and maybe

is something we think is very well placed in terms of risk and reward.

We had a management meeting with

and I think what comes out very clear is that on all operating parameters, things look a lot better. Credit growth has come off a bit from a high base but overall, things are looking good. So, it could be a stock that we’re going to really appreciate.

If the Adani group’s FPO, it means the promoter is selling, the money doesn’t go to the company. But if it’s a QIP or additional fundraising, dilution may occur but the money goes back to the company. What will make the market happy?
One of the important characteristics of Adani Enterprise and many group companies is that institutional ownership is not significant at all. If you put that part aside, no other mutual fund has any meaningful ownership of the Adani Group’s name, which is definitely not a good factor from a credibility or perception standpoint.

« Back to the recommendation story

Management is trying to see that if they can do more meetings and do fundraising from local institutions, even if it means promoter shares will go down, it will go down with the investor community as well. This is something we have to keep in mind but put aside that, the way that group has acquired assets, created debt with almost no parity on cash flow, it’s definitely kept institutional investors away from it. We’ll just have to see how much they can raise the price and who can participate in it so that the structure is clearer.

Given the fact that many of these new age tech companies are being written off by the Street, do you think that makes a case for more interest in some mid-tier IT companies?
Some midcap IT names have shown some resilience and when we look at the numbers – be it MindTree, LTI, LTTS and

– many of these companies have provided a very good set of numbers with some increased margins. We think there’s a case for some kind of revival in the wider IT space and some of these midcap names as well. We don’t like the judgment of some of these names like and LTTS but the selective Persistent system is something we will definitely love.

Which defense stocks are the best to own right now? Every defense company has a different kind of proposition, some are in ships, some are in airplanes, some are building drones. For mid-term investors, which defense business is the best to own?
We love two stocks – one is

and here recently, management has provided guidance where there is an increase for FY23 – 26% to 27% versus 24% to 25% previously. Given how the whole dynamic has changed in the last year and a half due to the Russo-Ukrainian war and the government’s policies in favor of some domestic companies, that’s definitely a huge positive trigger and it could be a story for the next three to five years with a lull pause period as lower floating stocks.

Maybe on a quarter-to-quarter basis, sometimes the performances are not achieved but for those who have a longer term view and want to allocate a certain component of their portfolio, defense will be one of the important themes for the long term. Both Bharat Electronics and Hindustan Aeronautics have decent size, quite diverse product lineups and excellent margin profiles. These two names, we will definitely be positive.

LIC is where everyone is trying to do whatever they can to convince institutional fund managers that these stocks are cheap, every broker or every major broker has a buy recommendation, the government has made it clear they know the intrinsic value. LIC and they want to create more value. The LIC management transfers the funds back to the P&L which changes the entire embedded value. But the stock refused to budge.
Operationally, they have done quite well. If you look at the quarter, both in terms of gross premium collection, new premium collection and VNB margin, across parameters, they did well, but usually when companies do IPOs and when a lot of retail investors and a whole bunch of other categories. investors are participating and the stock is disappointing, supply is making so much of an overhang that it’s taking a while to really get back to that level, but I think in terms of fundamentals, in terms of operating parameters, it’s looking very attractive.

If you compare some of the PSU banks, maybe around the Covid period, people didn’t want to look at it but when the turnaround happened there was a massive reassessment. I think LIC can also have a positive impact over the next three to six months and more, as it approaches the IPO price.

What do you think of the whole cement room? Just today, there was a broker note which spoke about how price increases are expected and price increases of up to Rs 15 to Rs 20 per bag have been spotted in November. Demand is expected to grow by nearly 6% to 7% in the second half. What do you like about cement?
We have a positive outlook. Post Diwali, you’re seeing increased activity and across the major markets, we’re seeing price increases and we’re also seeing a reduction in petcoke prices which will definitely help margins.

we like

which are our top picks in the cement space along with names like where overall growth visibility is much better.

Source link