Dipan Mehta, Director, Elixir Equities is positive on IDFC First Bank, Reliance Industries (RIL) and Alkem Laboratories.
“IDFC First Bank is one of the top banks to buy in this market. Other banks also are quite interesting but this one had a good track record and very dynamic management,” he said in an interview with CNBC-TV18.
According to him, all these banks certainly will benefit if the Reserve Bank of India (RBI) goes ahead and changes its policy as far as ownership norms are concerned.
AU Small Finance Bank is the best pick as far as small finance banks are concerned, he said.
“I have been positive on Reliance Industries Ltd (RIL). It is a good defensive stock. It is time to be a little bit patient because some of the businesses which they are nurturing at this point of time have a very long gestation period to start getting into profitability and having decent return ratios as well,” he said.
He believes, while there is a possibility of 25-30 percent rally in public sector undertaking (PSU) stocks – as they come back to mean averages as far as their P/Es are concerned – it is not going to be a secular growth story where investors can buy and hope that the stock will double/triple over a three-four year period.
“However, because of their attractiveness, you will see very strong trading rallies from time-to-time and investors who have a trading mindset will certainly look at participating in those trading rallies,” he said.
Dr Reddy’s Laboratories (DRL) is one of the best picks within the pharmaceutical space.
He is positive on Alkem Laboratories too.
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