Keep Glenmark Pharma, Bajaj Auto & Yes Bank on radar: BNP Paribas

Gaurang Shah, Asst VP, Geojit BNP Paribas Financial Services in an interview with ET NOW said that Bajaj Auto has recently introduced discover 150 which was an entry level bike and has had great success. Yes bank is showing great interest to strengthen branch network and with the kind of cash it will not be a difficult time for Yes Bank to get an upside. So, one should keep all these stocks on the radar on a days like downtick yesterday.

Glenmark Pharma, Bajaj Auto, and Yes Bank give us your reasons as to why exactly do you like them as an investment proposal?

I would flag off Glenmark Pharma over here negativity has been subsided, stock has actually bottomed out closer to those levels of 240 much more clarity in terms of product approval, healthy pipeline as far as going forward 6 months-1 year product introduction is concerned and approvals thereof. There has been a positivity in to the domestic market and of course in the US market for the products of Glenmark Pharma so we have a recommendation with the one year target like you mentioned 340-330 is the kind of targets that we are looking at on Glenmark.

I don't think there could be more negatives coming in some of the midcap pharma pack because they have shown tremendous amount of performance as far as quarter on quarter numbers or year on year performance is concerned. On back to Bajaj Auto definitely Hero Honda has been a market leader but Bajaj Auto has recently introduced discover 150 which was an entry level bike and has had great success.

The company Bajaj Auto also plans to launch couple of more variants in the high end category and the midsized segment. We expect the margins to also improve going forward from here on and a price target of roundabout 2400 is what we foresee as far as Bajaj Auto is concerned.

The last one on the Yes Bank front we have a price target of roundabout 325, fantastic stellar set of numbers, the CASA grew by about 150 basis point, the loan off take was also witness to roundabout 79% and going forward the bank is showing great interest to strengthen his branch network and with the kind of cash that the bank has got I don't think it will be a difficult time for Yes Bank to even have a that kind of an upside so I guess one should keep all these stocks on the radar on a days like downtick yesterday should be used to get into them.