Will you still be a buyer in Titan on corrections?
Yes, I will be a buyer on Titan. I believe that in this space, especially in gold jewellery space, one has to be with the leader and with the most trusted brand name. Titan has made that space and that position which is probably not going to be conquered by anybody in the near future. People today might be going for Kalyan Jewellers etc, but I do not think there is any match in terms of the trust factor and the customer loyalty factor for Tanishq brand.
Now the interest rates are going up and the thinking is drastically changing from buying at any price to valuation and value has to be considered. That is probably giving the market this kind of jitters. In the case of Bajaj Finance, we have seen 27% growth is not bad but still the stock went down by 7%. Even 11% jewellery growth is not a joke and still the Titan stock is down. That is purely because people just want to switch the style from buying at any price to looking at value. However, the high quality companies will deserve premium and Titan will definitely find a space in that.
At what price will you buy Bajaj Finance then?
Bajaj Finance has always traded at very high multiples. Even now just trading forward probably will be around 8 times. There is no sacrosanct number where you will definitely buy it but going by what we have seen in the last few years and months, Rs 5,500-5,000 seems to be the range where one should buy it blindly.
At a time when all banking stocks are in bull run, why is ICICI Bank faltering. This stock has got everything going for itself, credit growth, subsidiaries, CASA, brand, digital and yet it is getting jammed?
I think it is only a matter of rotation out of the stocks. People have already moved to finding something new in the same sector or somewhere else and now in banking, there are so many options. Everybody is looking at public sector banks and every day a new name comes in.
Valuation-wise, ICICI Bank has reached a very high level and from here onwards, what next? So why not look for something which has not moved as of now? It is just the kind of rotation which is happening. There is specifically nothing negative I have heard about ICICI Bank. They are continuously doing what they were doing very well with the change of management. They have improved their performance to a large extent and that is now at steady state.
So the stock will probably need one more trigger. Maybe if the management announces something, if they give some other strategy, next growth trajectory or something of that kind, that probably will give a fillip to it, but otherwise I do not think there is any reason for anybody to sell ICICI Bank. We are holding it.
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