“Among banks, SBI could lead the rally. There could be a 20-25% upside in SBI in a quarter or so, followed by 2 more PSU banks. Looking at the current market situation, I think PSU banks will take the leadership,” says Rahul Shah, VP-Equity Advisory, .
A strong show by M&M; continues its uptick and now we have got news that TVS Motors may be looking at raising about $500 million for the EV business. Where within auto, are you recommending a fresh buy?
The way markets have been and the way the auto stocks have been, EV has been the play for the last six months and that is the future. For me, TVS Motors looks to be one of the top picks in the two-wheeler space. Second, one should also look at Tata Motors which has rallied quite a bit but some more upside is expected from here as well. We are getting back to focusing on the auto pack, on companies with an EV focus.
What are your thoughts on banking and are ICICI Bank and SBI going to be the leaders?
Among wholesale bankers numbers, ICICI Bank’s numbers were quite strong. SBI surprised the Street with a straight consecutive fourth quarter of good numbers and improving asset quality. Going forward, the focus will remain on the wholesale bankers.
Among the wholesale bankers, top of the mind is large PSU banks and that is what we have been seeing in the last couple of weeks. The play is extending and moving from SBI to PSU banks like and . I think this will continue. The trade for the next one quarter should be PSU banks and SBI definitely will take the leadership and there should be a shift from investors putting more money into SBI from the private sector banks’ ownership.
So, SBI could lead the rally. There could be a 20-25% upside in SBI in a quarter or so, followed by 2 more PSU banks. Looking at the current market situation, I think PSU banks will take the leadership.
We saw a reaction of sorts in the M&M stock post its earnings. What did you make of the earnings and more importantly of the commentary?
Earnings were in line with what we were expecting and what the street was expecting. There was no major disappointment in EBITDA as well as the margin fronts.
More important from the commentary front is how the management outlook and focus has been and the outlook in terms of the EV environment for the next couple of years. We have to see how M&M is going to take a stand on this. Otherwise, the numbers were okay. To play the rural economy, we have only two stocks — M&M and Escorts. We had the third consecutive good monsoon so the spend on the rural economy should be there. My view is the stock should do well in a couple of quarters.
Any views on the Nykaa IPO?
So far it looks like there would be a blockbuster listing.
For all the latest Business News Click Here
For the latest news and updates, follow us on Google News.
Denial of responsibility! NewsBit.us is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – [email protected]. The content will be deleted within 24 hours.
