Bullish on Atul Auto, Ajanta Pharma and PVR: Pankaj Pandey, ICICIdirect.com

In a chat with ET Now, Pankaj Pandey, Head-Research, ICICIdirect.com, shares his top three stock ideas. Excerpts:

ET Now: You have got a long list of midcap ideas that you like. I can see Atul Auto, Castrol, PVR etc, top three names that you would like to recommend?

Pankaj Pandey: If you look at some of the midcap names like Atul Auto, we are quite positive with a target price of 800. This company has grown their volumes by about odd 40% in the three wheeler space compared to about 7% for the industry and we would expect that going forward, they will deliver about 20% kind of a volume growth. We like some of the names like Ajanta Pharma wherein we have a target price of 3220.

This company is very consistent in terms of performance similar on the lines of Lupin. This company’s profits would grow about 25% CAGR over the next two or three years and despite having no exposure to the US market, we draw a lot of comfort in the kind of growth the company has delivered up till now and what it can deliver in future.

In addition to that, some of the names like PVR have got a 25% share in terms of the entire multiplex screens. In next two years, they will continue to add about 70 to 80 odd screens and will deliver EBITDA growth of about odd 16% which is why we like this particular stock. So these are the stocks which we are recommending to our customers.