Bullish on Development Credit Bank, Infosys, Dish TV, Mangalam Cement and Orient Paper: Pankaj Pandey

In a chat with ET Now, Pankaj Pandey, Head of Research, ICICI Direct, shares his stock ideas.

Is there any particular sector or stock that you are overtly bullish on right now over the medium term?

We are bullish on two sectors - IT and pharma. In IT, we can use the correction as buying opportunities as in Infosys.

We have been positive on some of the mid caps like Development Credit Bank. The company's latest quarterly results reaffirmed our faith in the bank being on the path of a turnaround. Going forward, we would expect that the bank would maintain its margins for more than 3%. It is trading at about 1.5 times FY13 adjusted book of about 40. We feel that it can fetch multiples of about 1.8 times.

Dish TV is another counter which we have been liking. The company has been a beneficiary of the cricket World Cup and the festive season. It added about 1.1 million customers. In Q3, we are expecting that it will be adding about 0.9 million. In FY12, we would expect it to make profit of about Rs 105 crores compared to the losses what it had in the past two years. We are expecting ARPUs to improve by about 1% odd.

Besides these, we like Mangalam Cement and Orient Paper in the cement mid-cap space.