NEW DELHI: As many as eight stocks from large and midcap space in the S&P BSE500 index are trading at all-time highs amid volatility. Some of them have a sound basis and fundamentals backing them, while a few have rallied on just speculations. They are from a mix of sectors including BFSI, consumer and industrials. Though, most of them are quality names, analysts believe.
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Here is what Mohit Nigam, Head – PMS at Hem Securities, believes what you should do with them:
JSW Steel: The steelmaker has benefited from global commodity prices which are continuously increasing due to sanctions. Meanwhile, the company also took two hikes in product prices. We believe the commodity cycle will continue and JSW will benefit from that. We advise you to hold the stock.
Bharat Electronic and HAL: Both companies are continuously receiving orders from the government, following a significant amount allocation towards the defence sector. We believe we should hold the positions and buy these stocks on dips.
AU Bank: We are expecting a significant improvement in the banking sector result for the March quarter. We will see improvement in asset quality and CASA ratio for AU Bank and thus we should hold the position.
Varun Beverages: For upcoming quarterly results we expect volume to grow by 17.6 per cent. The company has also updated its entry into the non-beverage category, with new signings with PepsiCo for Kurkure Puffcorn. We believe we should hold the stock for an upside of up to 10 per cent from the current level.
Poonawalla Fincorp: From a fundamental perspective, the stock looks overvalued as the ROE is negative 20 per cent and no significant growth in revenue is visible in the last few quarters. The stock is currently at a good level to exit.
Sheela Foam: It is a leading player in India’s mattress and foam products industry, currently trading at Rs 3,894 levels. It is trading at an RoE of 20 per cent. Continuous sales growth is visible in the company and it is expected to give a good quarter. We believe investors should hold their position.
Deepak Fertilisers: In the fertiliser sector, we are expecting huge demand and to meet that demand the government might announce a subsidy to increase production. We should hold Deepak Fertilisers and buy the stock on every dip.
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times.)
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