Recent fall in private banking stocks unjustified; prefer Axis, ICICI Bank: Mayuresh Joshi

In a chat with ET Now, Mayuresh Joshi, Fund Manager, Angel Broking, shares his top picks from large and midcap baskets.

ET Now: Can you name some of the stocks that you may have bought in the ongoing volatility?
Mayuresh Joshi: In the largecap space, we still like largecap private banks. We believe that the recent stock price erosion is not justified, considering the kind of earnings momentum that these banks can actually exhibit over the public counterparts.

So banks like an Axis Bank and ICICI Bank are something that we continue to prefer. Within the NBFC space, LIC Housing Finance has corrected meaningfully and at 2 times price-to-book ratio, it looks extremely attractive. L&T is more or less a pick on domestic recovery capex cycle theme.

It should should do exceedingly well due to decent order book and pick up in the hydrocarbon business. Even as the EBIT margins for L&T in the power and heavy engineering segments remain under pressure, the overall scheme of things in terms of how the asset sale might happen for the non-core asset look extremely attractive.

In the midcap universe, Aurobindo Pharma is something that we continue to prefer due to potential addressable size in terms of the injectable business and extremely strong ANDA pipelines. The company's recent acquisitions will help the company expanding margins.

Meanwhile, Garware Wall Ropes is something that we continue to prefer within the midcap universe on declines. A fall in raw material prices of polyethylene is going to lead the company in a substantial manner. The export pick up has been quite humongous for Garware Wall Ropes and even the valuations at this point of time look extremely attractive.