Investment ideas: Neeraj Dewan’s top 2 buying ideas in this market

“In the large-cap space, it now trades at a very attractive valuation. It is close to approximately twice the book a year on. The second stock idea is because the numbers were pretty decent as far as AUM growth goes and collection efficiencies have improved,” he says. Neeraj DewanDirector, Quantum values.



It is expiration day. Let’s see if a base case is made for the Nifty. What is your strategy for the day and is it a different strategy where you will be running for the cover post at 2pm?
As for expiration, we have seen some very bad expiration this month for bulls. Any pullback has really been sold. It would be interesting to see today again because I don’t see too much bullish in the short term. The best case not for today, but for the next couple of days would be for us to hang on to the downside that we have done recently. If we manage to do that, then slowly and steadily the market can pick up again. I don’t really do daily monitoring so it will be difficult to say how the market will play today after 14:00. We look a little more in the short to medium term and not in the day to day.

What happened with ? it came out with announcements of massive capital expenditures and plans to become number two in the market and paint stocks plummeted. How would you approach the sector now?
There are two things. In the case of Asian Paints, when a big player like Grasim comes out with this kind of big capex announcement, it’s definitely going to cause some sort of disruption in the short term, although it’s not that easy for them because Asian Paints has a brand presence. and distribution that will take them some time to catch up. But they can definitely cause some disruption.

Second, the Asian Paints valuation is not really cheap. It’s not really in that value zone where you say it’s okay, now it’s a very good price to buy. Right now I’d be a bit wary of investing in paints or something like Asian Paints, I’d rather look at other opportunities.

it came out with its quarterly performance and it was pretty disappointing. Losses widened to Rs 1,680 crore; EBITDA is down 95% and now the competition is piling up in the space with Air India and also coming back into the space. How will spikes in crude oil prices, as well as all other factors, affect Interglobe Aviations quarterly performance going forward?
The high price of fuel is hurting everyone, including the aviation space, and until we see a significant correction there at the end of the war or for any other reason, it may cause demand to decline with all the steps that the central bankers they are taking all over the world. If that really happens, as far as fuel prices go, it can help them.

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As far as the business and their market share are concerned, it will take some time for the new players to find their place and give them tough competition because they have a presence and they have their spaces and it will be difficult for someone to prove it. as soon. But the next few quarters would have to be monitored. If there is any significant correction there, that can send them back into profit and that is something to watch out for.

Are you specifically looking at any of the small and mid-caps after the recent correction?
A lot of stocks are going into the value zone because previous high valuations led to this kind of market decline, but the one thing is that until we see a significant correction in fuel prices or a decline in inflation numbers, we won’t There will be a nice improvement when it comes to margins.

We’ve seen good top line improvements at many companies, whether it’s retail or infrastructure, but the margins are bugging everyone. But there are some sectors that one should be looking at. Capital goods infrastructure is one of those sectors where I feel there are good opportunities and their order books are very good. So any small correction in commodity prices, fuel, will really boost your margins. This sector helps real estate companies and includes some home improvement names.

Even cars and car accessories are looking good because even commercial vehicle numbers are improving and that’s helping the top line there. Margin is something one should be concerned about at the moment, but in the future, the kind of steps governments are taking and interest rates going up, margin improvements will also happen.

Therefore, the names of cars, infrastructure and even banks must be considered. Banks are a space where there will be good demand for credit. Even auto finance companies have seen good AUM growth in the last quarter. That is also a space where we will continue to see demand.

it is just Rs 15 away from the 52-week low. We have seen the compression of your PE. Certain brokerage reports speak of upgrades. How would you approach this action?
This is an opportunity because every time Jubilant Foodworks has corrected for whatever reason, it smartly recovers because as far as the top line goes, I see it continuing to grow. There will be some pressure on the margin from food inflation, but going forward, if one has to keep a six to nine month perspective, the stock should come back with a cooling off of inflation and the kind of open that is also happening, this is an opportunity that one should look at.

What are your two stock ideas: buy or sell?
Basically in the large cap space,

The bank is now trading at a very attractive valuation. It is close to approximately twice the book a year on. Basically one can enter through HDFC Ltd because you get HDFC Bank cheaper due to merger ratio.

Second is Shriram Transport Finance because we’ve seen the numbers were pretty decent as far as AUM growth goes, their collection efficiencies have improved as well, the kind of demand that we’ve seen in commercial vehicles because they’re the market leaders in vehicles used. commercial vehicle financing, so I think this is a one-time stock on the one-year futures book, which is also very attractive.

(Disclaimer: The recommendations, suggestions, points of view and opinions given by the experts are their own. These do not represent the views of the Economic Times)

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