ENIL a good bet: Fayeza Hafizee, Institutional SalesIntime Spectrum Securities Ltd

Fayeza Hafizee, VP, Institutional SalesIntime Spectrum Securities Ltd, in a chat with ET Now talks about the mid cap stocks.

Do you think the rally is going to be boosted by the large caps itself or probably mid caps can start contributing?

I do see some shift in interest towards mid caps but for the time being, it is definitely going to be lead by large caps. But the real picks will continue to be mid caps because most of the large caps are looking at fairly high levels. Within that segment, I only advise stocks to be picked up only if they have not been major underperformers but are seeing some good news flows. Within mid caps also, I would be cautious but again I do anticipate that flows will resume there as well.

What pockets then in the mid-cap universe would you still be bullish on?

I am not really looking at it from a theme based perspective but within mid cap stocks, we have a couple of things like Karnataka Bank for instance. The bank is among the most lowest valued in the segment whether you take it on a P/BV valuation or any other parameter, I still see a lot of value coming into the bank. So we do like that in the space purely based on the valuations. I see the counter at least touching Rs 215-220 in the next 3-6 months. If there is any sort of a takeover or some sort of a merger impact on the bank as has been rumoured, then you could see a much higher target there.

Among others, you should look at may be the radio entertainment segment where the changes in the licensing norms and the royalty payment norms from fixed value to per cent of revenues is likely to improve revenues of the segment. ENIL is the best pick and probably one of the only pure radio based plays is one thing that we do like, that is a little longer term call.

We think an 18-month hold on that could give you a very high target of something like 360 or something, so these are some stocks that we do like in the space.