Deven Choksey of KRChoksey remains bullish on life insurance businesses and recommends two companies – HDFC Life and Bajaj Finserv. He also shared his views on the state assembly elections and L&T numbers.
Regarding L&T, he said the overall environment remains a concern because of global uncertainties over trade and Brexit. “However, at this point of time we are relatively confident and at the same time cautious in keeping our investment view on the subject. We like the company and we feel that it could give a moderate to decent return going forward if a holding period is around 2 years,” he added.
Choksey says the Assembly election results are not likely to change the market or market-related momentum. “The election results are a given. On the contrary, after elections, one would like to see how the combination of BJP and Shiv Sena would play out in Maharashtra because if there will be some kind of a friction as the pre-poll situation suggested then probably that may not be good for the state as a whole. But we keep our fingers crossed and hope that doesn’t happen,” he added.
“One will have to look at the development aspect of this government and this is where we feel more comfortable. In rural Maharashtra this government has done a good job, maybe one is expecting them to perform better in metros where they are lagging behind. It that happens, then the next 5 years should be smooth as far as the government rule is concerned and somewhere down the line if decisions are taken on ‘single nation single election’ – this would probably play out very well as far as India as an economy is concerned,” he further added.
In the commercial vehicles space, Choksey recommends Ashok Leyland. "We like the company from the investment perspective. We take the view of next 2 years and probably the worst is discounted in the price currently. Apart from this, we continue to like Sterlite Technologies because of the advantage that the company has in the form of a complete business model which is fibre to networking and solution providing,” he noted.
First Published: IST