Polaris is a favourite of investors and traders: Avinash Gorakshekar, Edelweiss Financial Advisors

Avinash Gorakshekar, VP Research, Edelweiss Financial Advisors, in an interview with ET Now, gives his stock recommendation


What is it that you would recommend from a medium term perspective?

Even within in the midcap basket we would like to go with stocks which are reasonably visible. Liquidity is a very important criteria for us. We are very extremely positive on the BFSI space from the IT sector. A stock like Polaris India has been beaten down after the results.

It is a typical tier two midcap stock but clearly a favourite both from the investors as well as from the trader community. So we are seeing reasonably good kind of upside because the kind of moves this management has done the stock may have underperformed in the last few sessions but if you see the kind of acquisition this management has done they are zero debt company. They have got about Rs 500 crore of cash on the balance sheet and more importantly the BFSI space has clearly shown a good uptick from the main consuming market US. So our sense is we have been telling clients to accumulate the stock gradually. We are looking forward for at least a price of roughly about Rs 250-260 in the next 6 to 12 months. So we do keep coming with lot of stocks which obviously are smaller cap stocks also but primarily now this would be my pick from the midcap IT space.