Nischal Maheshwari, CEO, Centrum Broking, says “private banks are on the move. They are really in a good spot. Numbers have been very good. Valuations are favouring them. I am very hopeful that in the coming quarters two or three sectors will do well, IT, banking, and to an extent FMCG also.”
The Bharat Forge stock is at an all-time high and the commentary also has been superb. But at Rs 1,350, would you be a fresh buyer in Bharat Forge?
Nischal Maheshwari: Unfortunately, we do not cover it, so it is difficult for me to say that. But they seem to be in the right industries. They have done very well on the defence side. They were one of the companies who had invested very early into the defence space and I think they are reaping the benefits of it. Going ahead, as I said, we do not cover it, so it is difficult for me to call on the valuation front. But I think the company is a very decent one in that space. And again, on the engineering side, manufacturing side, they are one of the good companies out there.
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What about private banks? How long before you actually see a meaningful and more importantly sustainable uptick in them as a bunch?
Nischal Maheshwari: If we really look at it, except for HDFC Bank and Kotak because of the accident, otherwise both Axis, IndusInd, ICICI, seem to be doing pretty well. In the last one month, they are all up by almost around 7% to 8%. So, private banks are on the move. They are really in a good spot. Numbers have been very good. Valuations are favouring them. I am very hopeful that in the coming quarters two or three sectors will do well, IT, banking, and to an extent FMCG also.
Within the two-wheeler pack and this entire rural recovery that we are talking about, do you think two-wheelers like Hero MotoCorp, etc, are the best way to play it?
Nischal Maheshwari: I am quite positive on Hero and not only the rural side but they have done pretty well on the EV side also now and there is a whole bunch of EVs which they are looking to launch going ahead. So, rural recovery, obviously, they have got the largest market share on the rural side, so, yes, Hero is the best place to play the rural recovery game.
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