Can Ather Industries, Anumpam Rasayan prove to be the next Infosys? Vinit Bolinjkar answers

"While searching for the next Infosys, I would look at some of the stocks in the pharmaceutical space. I like that space a lot. A couple of companies in the intermediate space which could do very well are Ather Industries, Anumpam Rasayan. Their manufacturing base and their business model is very strong," says Vinit Bolinjkar, Head of Research, Ventura Securities.

Where within banks would you find comfort to buy afresh at these levels?
We like Bank of Maharashtra, Punjab National Bank (PNB) and a bank which has been largely ignored by the market – CSB Bank. We believe CSB Bank has put in a lot of effort in rebuilding their model. They have their executive management team well in place, the second line is already firing and we believe that this stock among the private sector banks could be the darling of the market in the next few days.

Today there is a news which indicates that IDBI expression of interest (EOI) deadline will be extended. Would you chance your arm at a franchise like IDBI Bank? Ultimately it is a brand and if it goes to the right suitor, it can really scale up. They have a banking license and a home finance subsidiary. They also have LIC backing.
Definitely IDBI is a very good jewel from an M&A kind of perspective and given all the aspects that you mentioned about strong competitive advantages, any player would gain from acquiring IDBI Bank. I believe this bank can be bought but it should be a creeping acquisition because you never know when or how the timelines will play out.

What is your take on a couple of these marquee companies which came under pressure today – Colgate as well as Page Industries. Do you think dips like these should be used as a buying opportunity?
Yes, these are just flip trades that happen because the counters are not seeing any attention and when some kind of falls happen in these compounder stocks. One should gradually SIP into them because they are going to continue to rule the roost. They are the market monopolies and will continue to do well.

You have spotted an interesting stock for us – Aditya Vision. Any other smallcap names that have come on to your radar?
We like EMI Ltd. It is another stock in the similar space based in down south and Hyderabad and Telangana area and also they have good presence in Delhi. We believe that that stock should perform well and our target on that stock is Rs 180-200 in the next two to three years. You are looking at a more than 100% run from the current levels.

When do you think IT will reach a deep value zone? The bad news is out in the open?
I have been an advocate of not buying into IT stocks for a very long time primarily because of the fact that their valuation multiples are far away from their mean average valuations. AI is taking over and a lot of functions are going to get obsolete. I believe IT will have a long winter going ahead and until the valuations cool off substantially from here, I will choose to be on the sidelines.

A lot of things would be at play in terms of how the consumer habits move but I think the next big winner would come from the manufacturing space. It cannot be Coal India or a value company it has to be something which is a blend of manufacturing and technology.
I second your thoughts and one of the stocks that I like which is going to come into the market listing soon is going to be Dronacharya. That is a training company for drones and we are going to see a series of new regulations come in which is going to expand the usage of drones, especially in supply chain and logistics. I believe that residential usage of drones is not going to be very far off, I contemplate 2025 at the outside and this segment is really going to do well.

What could be the next Infosys, any bets?
I would look at some of the stocks in the pharmaceutical space. I like that space a lot. A couple of companies in the intermediate space which could do very well are Ather Industries, Anumpam Rasayan. Their manufacturing base and their business model is very strong.