Bullish on PFC, Sterlite and Escorts: Shashank Khade, Kotak Securities

In a chat with ET Now, Shashank Khade, Vice President, Portfolio Management Services, Kotak Securities shares his views about various stocks.

ET Now: Give us some stock ideas one from the large cap space, one from the midcap space and the third one from the small cap space?

Shashank Khade: Some of the stocks which we like is Power Finance Corporation on the large cap space. Our sense is that a lot of negativity is there in the price relating to poor financial health of SEBs and as things start improving on the ground we have seen that SEBs have taken tariff hikes over the last 3-6 months. So our sense is that PFC at one time book value makes a interesting buy that could be really interesting to look at.

On the midcap space stocks like Sterlite Technologies with visibility of business and bottoming out of margins actually looks interesting with the current price trades at about four times EBITDA.

From small cap space Escorts is one stock to look at. The headwinds in volume growth and margin pressure already are built into the price and valuations are reflecting the same. So any improvement in volume growth and margin improvement can actually lead to a rerating of the stocks.