Avoid companies with questionable business models: Vinay Khattar

In a chat with ET Now, Vinay Khattar, Head Research (Individual Clients), Edelweiss Financial Services Limited, shares his views markets. Edited Excerpts:

ET Now: What would you be bearish or perhaps avoid in this market? Everything seems to be going up. Wherever there is relative value, the market seems to be latching on to that theme. What would you avoid, what would you be vary of?



Vinay Khattar: I would avoid stocks where the visibility of earnings and profitability is low. So whatever is the quality, everything is rising. Some of the stocks where the numbers have been very bad, business models have totally broken down, are also rising very significantly. Stock specific, do not keep the eyes off the ball. Do not enter into stocks with questionable business models and lack of numbers. Look at specific companies and keep on buying as and when the opportunity arises.