Buy Bajaj, major PSU banks for long term: Sangeeta Purushottam

Sangeeta Purushottam, Managing Director, Nine Rivers Capital, talks to ET Now on various stocks.

Identify 2 stock ideas for our viewers, I will keep the market cap open. The timeframe is that you will buy it before Diwali and you will sell it after next Diwali.

You could pick any of the large PSU banks. There is value there and in a year’s time you should make decent returns. You may have to live with some downside in the near term but over a year, it should be okay. The other stock which, I will stick to the stock which I had mentioned last time also is Bajaj Auto.

Bajaj Auto is already at a new 52-week high. Bajaj Auto this year has appreciated by about 14-15%, last year has appreciated by 50%. Isn't it too late to buy Bajaj Auto now?

It is still not too expensive. It plays onto the consumption story. If you look at the valuations and the PE multiples, they are actually much lower than many of the consumption plays.

So it has been getting valued more as an auto stock than really a pure consumption play. It is cash rich, generates a lot of cash, has very high ROE on its core business. So it is a stock you could hold on your portfolio for a long period of time.