BHEL and Hero Honda are good at curernt levels: Suresh Mahdevan

Suresh Mahdevan, Head of Research, UBS Securities in an interview with ET Now talks about his tock picks for the coming financial year.

The new financial year starts from next week, what are your two or three large or mid cap ideas for the next financial year?

Something like BHEL is definitely interesting at this level, so I would put that as one idea. Hero Honda, another stock, which has been weak in the past several months, again the business continues to be solid. Third stock maybe Idea Cellular, I will put in there, so three stocks, Idea, Hero Honda and BHEL.

You like underperformers. You like laggards. BHEL, Idea, some of these are laggards?

Yes but these are also stocks where analyst conviction levels are quite high, so the stock is a laggard and your conviction level is quite high. It provides a very interesting combination.