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Book profits in metals, buy again at low levels; positive on Metropolis, says Prakash Diwan

market | Mar 15, 2021 10:29 AM IST

Book profits in metals, buy again at low levels; positive on Metropolis, says Prakash Diwan

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Market expert Prakash Diwan believes scrappage policy on old vehicles is good news but in the medium-term. He also advises investors to take profits in metal stocks and re-enter at low levels.

Market expert Prakash Diwan believes scrappage policy on old vehicles is good news but in the medium-term. He also advises investors to take profits in metal stocks and re-enter at low levels.

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“People are getting excited about a Maruti Suzuki and Mahindra and Mahindra (M&M) and all, they might not incrementally see such a huge difference because old vehicles that are phasing out are probably the ones that will get replaced with Tata Motors product or Ashok Leyland or possibly even an M&M but you have to be a bit picky about that and nothing in the short-term for sure,” he told CNBC-TV18 in an interview on Monday.
On metals, he said, “Copper has its own orbit but then this decadal high that we see whether this can continue to generate alpha beyond here, that is a big question and then I would believe that the pause would probably last at least about three-four months then you could see the cycle getting to be resumed. Definitely, it makes sense to book some profits and then re-enter at lower levels.”
In the diagnostic sector, Diwan sees enough headroom for growth for most of the players in terms of business that is available and the penetration level.
“It is a question of their ability to get the distribution, the collection and delivery mechanisms right. From that perspective, Metropolis still does the right things because they have grown in a very decent combination of organic and inorganic sectors whereas organic growth that Dr Lal Pathlabs or Thyrocare have demonstrated, will probably take much more time and resources to put behind the next leg of growth.”
Diwan’s top pick in the sector remains Metropolis.
“So I would believe if I were to choose one of those, it could be Metropolis and hold on for at least a longish periods of time, it will take a couple of years at least for you to start seeing a lot of data being created by these players.”
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