Dalelorenzo's GDI Blog
27Jun/210

Sanjiv Bhasin’s 3 fav PSU stocks

PFC, GAIL and NBCC are three PSU broths that Sanjiv Bhasin, Director, IIFL Certificate, is recommending. Edited excerpts from his interview with ET Now: Do you expect Nifty to punch a new high-priced now? The markets are forward looking. The corporate solutions have been a standout. We are just missing the timbers for the trees. Corporate India’s resilience and recital is excellent. So I will go by the numbers, that is what the market respects. And lo and behold! I told you by the end of May we may be staring at a brand-new high-flown which was apparently very-very impossible. What takes my breather away is the five-year underperformance of midcaps now turning into outperformance. Midcap index is at an all-time high and it is telling me that retail money is here and that is what is going to drive the markets.To cut a long story short, Nifty's next move of 200-300 items may be a bit of to and fro because of global cues. In the broader market, metals are poised to do much better. I think that is going to be the standout for 2021. What are the specifies you like in the PSU pack? A bunch of them have already run up. The report contains 3 furnishes which I speculate can still do excellent. The first broth is PFC. It is the biggest power lender, along with REC. PFC has a bonu harvest of 7 %. Power uptake is at an all-time high-pitched and you had the best of weather. In the next the three months, the heat wave will increase and so will AC consumption. So I conceive capability lenders are at their best. Margins are high and the cost of money is low. Recovery is very fast. PFC gazes poised for at least Rs 135 -1 40 to me. It is also a dividend yield and I think it is going to perform very well. The other furnish would be undoubtedly GAIL. It will be the biggest gainer of gas pricing and volume swelling, which has been remarkable. GAIL was in hiatus at Rs 85 -8 8 with a 7.5% dividend produce. I recall GAIL is headed to Rs 200. My third picking would be NBCC, which has been a big underperformer. At Rs 48 it has the potential to redouble given that real estate and construction activities are going to be at their best in the next 6-9 months. The firm has a huge amount of guild inflows. So these three PSUs look very good to me.What are your top selects in the midcap gap that investors can consider for the medium term as well as long term? Godrej Consumer has just roped in the best hand from Hindustan Lever Ltd( HUL ). Their margins on sanitizers and their other emergence parameters in Indonesia are showing high-pitched double-digit raise. It has been a relative underperformer but is headed to 3 people. I am looking at a target of Rs 1,100. Godrej Properties is going to be a standout comedy. They have raised fund at 6% which otherwise they are able to never do. They likewise did a very big QIP at Rs 1,415. They are going to be the largest executors. They have a management pedigree. This capital is headed towards Rs 2,250 in the next 1 year. One broth which has gone through all the problems is Zee but it is looking excellent now. The administration was always shrouded by one-off activities of the promoter. Look at the new deal. MGM is being acquired for $9.5 billion by Amazon. Zee has the most crucial free canals on the movie side. Their digital flow and new propels are extremely well received. Zee is the cheapest media inventory globally, so I am looking at a target of Rs 275. Again going down the ladder, DCB Bank and RBL are going to be outstanding gamblings.

Read more: economictimes.indiatimes.com

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