Maruti to remain a 'buy' post correction: Gaurang Shah
I would use opportunities at current levels or dips to add on to it in case I have got it at higher levels, says Shah.
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In an interview with ET Now, Gaurang Shah, VP, Geojit BNP Paribas Financial Services, shares his views on the Maruti and other stocks. Excerpts:
ET Now: What is your call on Maruti, BHEL and L&T?
Gaurang Shah: On Maruti, we remain optimistic though yesterday’s reaction was more of a knee jerk. There are concerns in terms of clarity but that will soon emerge.
One should definitely be looking at 1859-1900 again on the stock. It may take time because it saw a sizable amount of crack yesterday.
I would use opportunities at current levels or dips to add on to it in case I have got it at higher levels. But if I am waiting for a correction, then this correction is a good time to definitely nibble into the stock not with the 100% strength but with a small amount of partial investment should be initiated at current levels.
On BHEL, the divestment talk and the price tag will definitely depend as to where the stock goes but in terms of the sector-wise, we definitely believe that sub-1000 levels on an L&T is a better idea in terms of investment rather than taking a call on BHEL. The price tag is much deeper than what the CMP is and that creates a lot of negative overhang but yes they are not coming to the market that is a positive sign and the other PSUs would definitely would wanting to bet and invest in this particular stake sale of BHEL but I would not get excited with that.
ET Now: What is your call on Maruti, BHEL and L&T?
Gaurang Shah: On Maruti, we remain optimistic though yesterday’s reaction was more of a knee jerk. There are concerns in terms of clarity but that will soon emerge.
One should definitely be looking at 1859-1900 again on the stock. It may take time because it saw a sizable amount of crack yesterday.
I would use opportunities at current levels or dips to add on to it in case I have got it at higher levels. But if I am waiting for a correction, then this correction is a good time to definitely nibble into the stock not with the 100% strength but with a small amount of partial investment should be initiated at current levels.
On BHEL, the divestment talk and the price tag will definitely depend as to where the stock goes but in terms of the sector-wise, we definitely believe that sub-1000 levels on an L&T is a better idea in terms of investment rather than taking a call on BHEL. The price tag is much deeper than what the CMP is and that creates a lot of negative overhang but yes they are not coming to the market that is a positive sign and the other PSUs would definitely would wanting to bet and invest in this particular stake sale of BHEL but I would not get excited with that.
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