In an interview to CNBC-TV18, Pramod Gubbi of Marcellus Investment Managers, Ajay Srivastava of Dimensions Corporate Finance Services, Dipan Mehta, Member of BSE & NSE, and Ashwani Gujral shared their views on the fundamentals of the market. They also spoke about specific stocks and sectors.
They spoke at length about ICICI Bank, Adani Power, Divis Laboratories, and Dr Reddys.
On Adani Power, Gujral said, “My personal opinion is that power, etc. are all can of worms. Today Supreme Court has given one judgment, tomorrow some other problem will come up, environment, fuel – I do not think normal retail investors should be getting into power. It has done nothing over last 10 years. I do not really agree with this as an investment thesis. Yes, it is a trade, today it did very well, but it is not a long term stock.”
On Divis Laboratories, Mehta said, “It is a no brainer. Last couple of quarters have been coming good from Divis and this was a blowout quarter. What goes in favour of Divis is the fact that it has a differentiated business model, focusses on contract manufacturing and otherwise also the other businesses where they are present and they have got very strong backward linkages as well as low cost of manufacturing which is why they are able to sustain any price erosion which may come through.”
“The performance speaks for itself and I would say that the investor should hold on to the stock for a longer period of time. It could clearly be an outperformer in the pharmaceutical space as well as versus the broader market,” he added.
Follow stock recommendations by Ashwani Gujral here: https://www.cnbctv18.com/author/ashwani-gujral-115/Disclaimer:
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