G Chokkalingam, founder & MD of Equinomics Research & Advisory, spoke to CNBC-TV18 about his views on stocks such as Karnataka Bank and Datamatics Global.
“Karnataka Bank, for the last 6 quarters, has maintained a net NPA around 3 percent as compared to that peers like Lakshmi Vilas Bank and Karur Vysya Bank they have much higher net NPA and trading at 1.5 time to 4.5 time price to adjusted book value. Not only that Karnataka Bank has posted 21 percent year-on-year credit growth which is pretty impressive and its business size has also crossed Rs 1 lakh crore. Most interestingly, it is available at some 20 percent discount to adjusted book value. Considering all these, I believe that Karnataka Bank is one of the most attractive midcap stocks,” said Chokkalingam,
Speaking about Datamatics Global Services, he said, “This is another very attractive stock for me with a modest target of Rs 165. Stock is already down 23 percent from peak and rupee fall is positive. It has got more than 450 clients across the world. It caters to business processing services and also IT services. The debt is less than cash holding of the company. In the Q1 they have added 12 more clients to its sell list and lot of its clients are Fortune 500 clients. It is also opting for small acquisitions. The stock is trading at around 11-12 PE one year forward earning which is the cheapest in the IT services or IT enabled services business, therefore is strongly recommend Datamatics.”
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