We are not very sure about how profitable Zomato s business model is, but given that there is a frenzy for good names in the IPO market the pricing looks to be pretty decent, says Hemang Jani, Equity Strategist & Senior Group VP, Motilal Oswal Financial Services. Edited excerpts from an interview:
How should one approach Indian Hotels at this point of time? As things get ironed out on the Covid front, will there be a massive surge in the stock?
Indian Hotels management articulated in its investor meet their strategy to capitalise on the business recovery, focus on the new brands and businesses and, more importantly, pursue asset light growth. We are in a revival mode. Stronger players with better balance sheets and cost controls are in a position to take advantage of the revival. This bodes extremely well for a player like Indian Hotels.
For those investors who are happy getting into a stock for dividend and where the downside risk is limited, ITC could be a good fit but for growth oriented investors looking to outperform the market, ITC does not fit the bill.
Book profit in steel stocks to buy aluminium stocks: Hemang Jani
SECTIONS
Last Updated: May 26, 2021, 12:35 PM IST
Share
Synopsis
One can expect more re-rating in steel stocks on the basis of stronger balance sheets, says Hemang Jani
ETMarkets.com
It would make sense to take out some profits from steel and shift to aluminium where things are looking slightly better and the risk is less, says Hemang Jani, Equity Strategist & Senior Group VP, Motilal Oswal Financial Services. Edited excerpts from an interview:
Do you agree with Credit Suisse s view that it is time to sell steel and go away?
We have seen massive upgrades across steel stocks in the last 2 quarters. The major hypothesis has been that prices are firming up internationally. India is still at a discount and things are looking good. So there are two aspects here. One is that in metals or any other commodity play, the call is on the basis where the prices of those commodities are moving. The second part, which is
Explore Now
Book out of pockets where the upside has been strong and focus on companies or sectors where the price action has been muted and incremental data points are suggesting revival. We have come up with a new basket to play this unlock theme where we are putting Crompton, ABFRL, Orient Electric, says
Hemang Jani, Equity Strategist & Senior Group VP,
MOFSL
What is your view on Hindustan Zinc and Hindalco?
The entire metal and the commodity pack has seen a very solid move on the back of an underlying price trend for the base commodities and within that, on the non-ferrous side, we like Hindalco. The Novelis part, which is 70% of the EBITDA, is paying out well. For the rest 30%, there can be positive triggers going forward. So, definitely Hindalco and to some extent Nalco are the preferred plays.