For Sun TV, Rs 750 is my target for next Diwali: Sanjiv Bhasin

Get a basket of five-six stocks which include large caps and midcaps where you would not miss the flavour of midcaps but also safeguard yourself by being in prudent large cap names, says the Director, IIFL Securities.

There is a buzz that Reliance will pick up a stake in the Future Group of companies. Given the price action in the last two days in the Future Group of companies, is there money to be made there?
I have not been tracking Future Group. There was a time when I did that, but then all the debt and murkiness made it a no brainer. But the buzz is back and rightly so. For the last three years, the flavour was missing is midcaps which gravely underperformed. Now they are making a huge come back.

I am relatively sanguine on the midcap size because the size of the deals is changing. Look at the amount Reliance paid for Netmeds? It means a lot of stocks or companies related to digitalisation and retail are going to be seeing a re-rating. Whether Reliance buys Future or not, I will not be privé to and so I cannot comment. Like I said, there is greed returning across the board on the index but if there is something where you can still make money it will be midcaps. Even though there has been a sharp run up and you could see some bouts of profit booking, the midcap story for the next two years is here to stay.

There is a lot of pent-up demand in all. Let us take it with a pinch of salt that these four months have arguably created more wealth both on the gold and on the equity side. There is a lot of risk on the table and people are willing to put their neck out because money has been coming in.

What should one not buy in this frenzy?
There will always be buys and not buys and avoids. Four months back, everyone from large broking houses were negative on metals and autos. Look at how they have made a comeback. We have been contrarian and that time people were questioning our wisdom. Why did I suggest autos or metals? Look at the rally. It has been the best I have seen in the last two years. So yes, I would be little cautious on autos and metals. I think the price has already run up a lot.

I would look for a basket of stocks and avoid some of the proverbial names where the businesses are still going to take time to come back. Everything is not going to be hunky dory. We know that we are sitting at elevated levels which are far beyond normal reach and there could be a 500-point correction but you have to be choosy. Choose the right fund manager or your investment advisor. I will give you some five-six stocks which include large caps and midcaps as a basket where you would not miss the flavour of midcaps but also safeguard yourself by being in prudent large cap names.

Would you be a buyer in any of the media names, case in point being a Sun TV or Zee?
Rs 150 for Zee was a blind buy in the sense you had priced in all the negatives of Subhash Chandra, the parent promoter problems. We are not chasing Zee for reasons like banks having collateral etc, but Sun TV is my spot-on share. Buy it at Rs 350-370-390-420-430. This stock is going to be an unbelievable gainer. They have told you 68% is their EBITDA, market share gain in the Tamil market. The OTT segment is showing a lot of traction and now ad revenues are back from auto, discretionary and pharma. Sun TV still trades at less than 10 times and compared to Reliance or Zee, it is still a very reasonable stock and Rs 750 is a target for next Diwali. My top pick continues to be Sun TV.