The Economic Times daily newspaper is available online now.

    Want to play the festive theme? Bet on these 2 stocks: Sudip Bandyopadhyay

    Synopsis

    “A lot of consumer spending is going to happen over the next three-four months which is Dussehra, Diwali, Christmas and the entire festive marriage season. I would probably go and bet on Trent. I think this is one stock where there is a lot of opportunity for appreciation. The second company which I will bet on is the tried and tested Titan.”

    Sudip Bandyopadhyay, Inditrade Capital-1200ETMarkets.com
    “There is no problem as far as the southern large players like Sobha are concerned, but if I have to pick, I probably will go for Godrej Properties and Oberoi Realty,” says Sudip Bandyopadhyay, Group Chairman, Inditrade Capital

    How would you read into the kind of comeback that the Indian market has made, given that the rest of the global markets were looking rather jittery? This comeback has been led largely by financials. Will they continue to remain a pillar of strength?
    Two points. The way the Indian market is behaving, it is very clear that the emerging market funds, of which nearly 80% was deployed in China, are seeking exit from China and some of that money is bound for India.

    We are seeing that getting played out in the market and so we have to an extent decoupled from the mother market of US as well as other developed markets like the European and the UK and Japan market. Very clearly, the liquidity which is coming out from these emerging market funds out of China is helping the buying spree and sustaining and pushing up the Indian markets that is probably the reason why we are seeing this kind of liquidity driven move which is disjointed from the global news flows, global markets and the global happenings.

    Unlock Leadership Excellence with a Range of CXO Courses

    Offering CollegeCourseWebsite
    IIM KozhikodeIIMK Chief Product Officer ProgrammeVisit
    Indian School of BusinessISB Chief Technology OfficerVisit
    Indian School of BusinessISB Chief Digital OfficerVisit

    As far as BFSI is concerned, we have been very clear that this year BFSI is going to be doing very well. Yes we see ups and downs in between but by and large, if we are talking about the current financial year, we will see a secular growth as far as BFSI is concerned.

    There are multiple reasons. One is that loan growth has been strong. The way the economy is behaving we expect the loan growth to sustain. The second is asset quality improvement. Again the economy is coming out of the pandemic and economic growth being what it is, the asset quality challenges of most of the BFSI companies are a thing of the past.

    These two will ensure that there is sufficient traction as far as BFSI is concerned and also for the banks and other NBFCs, which are mobilising money from retail, because the bond market has been extremely volatile, lot of money is moving away from bonds.

    I am talking about retail money into bank deposits and that is helping the CASA as far as the banks are concerned as it is margin accretive.

    What about playing the entire festive theme? Would there be any specific sector like retail that you would look at or some of the consumer durable names that you would bet on for a bumper Diwali or Dussehra sales? Even the likes of Trent which has given 100x in the last 20 years?
    I think that is a good theme to play and there is a lot of consumer spending which is going to happen over the next three-four months which is Dussehra, Diwali, Christmas and the entire festive marriage season. I would probably go and bet on Trent.

    I think this is one stock where there is a lot of opportunity for appreciation. They also have announced an aggressive plan for expansion, obviously it has come from the house of Tatas and they have the adequate financial muscles and management to prop them. They are present in pretty much all these segments.

    The second company which I will bet on is the tried and tested Titan. This is one company which has gained from strength to strength. Also, what has happened over the last couple of years is that their brand value has significantly increased with multiple incidents affecting some of the competitors which eroded their reputation significantly.

    So, the brand value of Titan has got added and that does help them in incremental revenue generation at the cost of some of the other players. The market share of Titan amongst the leading players is also increasing and, of course, the festive season is a great time for them to produce fantastic results. Titan definitely is a good bet at this stage so is Trent.


    Talking to ET Now, Max Ventures referred to a pretty phenomenal rise from pre-Covid levels in terms of overall pricing. What is your outlook within that space? What are you looking at, by way of trends?
    We have been bullish on real estate. After a long time, for the last few months, we have been seeing significant pick-up in demand as far as both residential as well as commercial real estate and that definitely does benefit the players who have a strong balance sheet and projects in the metros.

    We have seen how Oberoi Realty has performed. We have also seen DLF to an extent as well as Godrej Properties perform. I will continue to remain positive as far as these stocks are concerned. There is no problem as far as the southern large players like Sobha are concerned, but if I have to pick, I probably will go for Godrej Properties and Oberoi Realty.

    What is your take on the entire IT pack? It is not a consensus call at all. The Street is clearly very divided. How are you looking at the entire space? Given the correction, is it very lucrative buy for medium term?
    I am not sure about the short and medium term. The jury is still out. There are definitely pressure points as far as IT companies are concerned. There has been pressure on margin on the back of huge attrition which led to a significant pressure on margins and that is what was getting played out.

    Listening to the commentary of the management of multiple IT companies, it seems that we have seen the peak of attrition and probably things will improve on the attrition front from here on. That definitely should be helping the margin as far as these companies are concerned. The second problem is the question of pricing pressure as far as the global markets are concerned because Europe is in some kind of recessionary environment. The US has its own set of challenges. So the big two markets as far as major IT companies are under pressure and obviously there can be some pressure on Indian IT companies as well.

    Having said that, if somebody is looking at building a long-term portfolio, I would still recommend that these corrections are probably the right time to accumulate good quality IT stocks and build your portfolio. You may not get the desired return within a period of one, two, three months but if you are talking about a year plus, there is fundamentally nothing wrong with Indian IT companies. We are bullish on HCL and Wipro at current levels and these can be picked up even now.



    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more


    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
    The Economic Times

    Stories you might be interested in