Select MNC stocks to keep on commanding premium valuations; buy from a long-term perspective: Neeraj Deewan

In a chat with ET Now, Neeraj Deewan, Director, Quantum Securities, shares his views on MNC stocks.

ET Now: A bunch of MNC names including United Spirits and Gillette India may look expensive and the trading volumes may not be as thick as others, but these stocks have done rather well. Are you actively looking at some of the MNC names? I am not talking from a de-listing perspective. Here, I am asking purely from a business perspective?

Neeraj Deewan: Some of these names have a strong brand that even though they might look expensive from a short-term perspective, the growth they report will keep on demanding that premium. What happens in these stocks is that the return ratios are so good and they get such good return on capital employed.

That is what will help these stocks commanding higher premium of 25, 30, 35 times. These names will definitely keep on doing well and one should to invest in these names from a longer-term perspective. These are not trading stocks. You cannot really expect to get return in a three to six months, but if you are looking at a two to three years, these stocks will surely give you good returns.