Deven Choksey backs PB Balaji as ideal leader for JLR, urges caution on defence stocks

Deven Choksey, in an interview with ET Now, affirmed that PB Balaji is a fitting choice to lead JLR. At Tata Motors, Balaji inherited a challenging situation but successfully restructured operations. Under his financial leadership, the passenger vehicle (PV) segment witnessed strong growth, and the commercial vehicle (CV) business regained momentum. Importantly, JLR—once seen as the toughest piece—now stands to benefit from Balaji’s turnaround expertise.

Choksey highlights that moving from a CFO role to CEO can offer strategic advantages, citing the example of Anisha Shah at Mahindra & Mahindra. Such transitions ensure financial rigor while scaling the business. PB Balaji’s deep understanding of cost structures and profitability is expected to bring long-term stability and growth to both Tata Motors and JLR, especially during a phase of significant change.

With Antfin planning to offload its stake in Paytm at a 6% discount, short-term market weakness is likely. However, Choksey feels that any investment decision should hinge on Paytm’s long-term fundamentals. The company has a solid front-end tech platform, but its future depends on successful integration with back-end systems like core banking. That will determine its viability beyond being just a tech story.

Stocks like BEL and BEML have surged in recent sessions, but Choksey expresses caution. These defence companies are now priced at FY28 earnings estimates, with growth assumptions fully factored in. While short-term rallies are possible on positive news, he believes systematic wealth creation requires discipline—and buying at stretched valuations may not be prudent.

Aurobindo Pharma's recent results were underwhelming, especially on margins. In contrast, peers like Dr. Reddy’s, Cipla, and Sun Pharma have shown strong performance in specialty and complex generics, earning market favor. Choksey favors companies in niche segments—like specialty generics, novel delivery systems, and CRAMS—while steering clear of firms that rely heavily on commoditized generics due to pricing volatility.