Two stocks that can make you money: Ashish Kapur, Invest Shoppe India

In a chat with ET Now, Ashish Kapur, CEO, Invest Shoppe India, says Elecon Engineering and Orient Bell are two stocks that he would recommend for buying.

Edited excerpts:


Tell us why do you like Elecon Engineering?

Elecon Engineering has two divisions – material handling and transmission. On the material handling equipment, over last few years, it has performed pretty badly on the back of very tepid economic and industrial growth. However, we are seeing signs of pickup. The order book has shown a traction of 43% and there are visible signs of recovery happening in this segment. Now given that and given the fact that we are expecting industrial growth to pick up going forward, the material handling equipment should do very well going forward. The other good thing with this company is that they have a very wide range of products in this segment and cater to nearly every industry, so to that extent it is a very visible and sustained growth going forward.

What is the second stock that you would recommend?

The second stock idea is Orient Bell. There are lots of buoyancy in the market on the back of the housing boom. We have seen housing finance companies really go up in the last few months. We have also seen cement, steel and other building material companies prices sky rocket. In the building material space, there is also a tile companies while the established players like Kajaria, Hindustan Sanitaryware, Cera Sanitaryware all have done very well and are quoting at very high valuations, my pick in this segment remains Orient Bell.

The company is still available at a very reasonable valuation partly because its financials are yet to show any significant improvement. The company took over Bell Ceramics in 2010 December and turned it around in a record time of 15 months but because of this takeover, the financials have taken time to improve and if you compare it with its peers it is available at very reasonable and a deep discount valuation.