Mayuresh Joshi's 3 top picks: UltraTech Cement, HCL Tech, Cipla

In a chat with ET Now, Mayuresh Joshi, Fund Manager, Angel Broking, says Dr Reddy’s, with the kind of buyback that they have announced, is going to be EPS accretive

ET Now: Your top three investment ideas right now.

Mayuresh Joshi: Within the largecap names, we are still sticking to companies like UltraTech Cement which I believe with its cement capacities and realisations, can be expected to stabilise. Demand growth is expected to come back over the next few quarters. It will definitely have an impact in terms of how return ratios pan out. Having a pan-India presence also helps. So UltraTech is something that we continue to prefer within the largecap universe. As I mentioned earlier, within the IT names, HCL Tech is something that we continue to like. Our own take is a 13 per cent growth both in dollar and rupee terms that is going to aid the company in getting that constant currency revenue growth that they are looking at. Transformational deal wins have been substantial. We expect that to continue. Engineering services is going to be a big margin driver for the company and within the pharma space, again something like Cipla or Dr Reddy’s is something that we prefer at this point of time. Dr Reddy’s, with the kind of buyback that they have announced, is going to be EPS accretive. We are probably still talking about an earnings growth in excess of 17-18 per cent over the next couple of years. So valuations are looking attractive. There is a strong ANDA pipeline with the mix of Para IVs and FTFs and valuation is not too expensive.