Buy PSL Ltd for Rs 165 target: Avinash Gorakshekar

In a chat with ET Now, Avinash Gorakshekar, Head of Research, Anagram Capital Ltd., shares his views on the outlook of PSL Ltd.

What stocks are you recommending to your clients?

We would like to put our bets certain mid caps typically and go with the bottom-up approach. Within the mid-cap space, we like PSL Ltd., which has a very large dominant presence in the submersible arc welded oil space, Not only in terms of size but in terms of the return on equity, they have been generating very decent ROEs of 20%+ and valuations also look attractive around five times FY11 and four times FY12 numbers. So, here we have a buy with a target price of Rs 165.