UltraTech Cement, Bharat Electronics, LIC Housing are top 3 picks: Mayuresh Joshi, Angel Broking

In a chat with ET Now, Mayuresh Joshi, Angel Broking, says valuations are looking extremely attractive for LIC Housing in finance from a price to book perspective


ET Now: Your top three investment ideas at this point?

Mayuresh Joshi: So clearly one really needs to take a very conscious approach to these markets. The markets are going to be extremely volatile. So any fresh exposure has to be around 10-15 per cent of the investible corpus with that caveat. Within the cement space, UltraTech Cement is something that we are liking in terms of demand recovery. We expect volume growth to be much sharper over the next few quarters with the government thrust on infrastructure and housing. So within the largecaps, UltraTech is one of our favourite picks. With the specific focus that the government has on defence spends, Bharat Electronics is another one. It has probably got a very clean balance sheet in terms of net cash on its books, return on equity, return on capital employed which are quite high. With the kind of order wins expected over the next two years, we are expecting a 12.5 per cent topline growth and 13.5 per cent EBITDA growth. Within the NBFC space, LIC Housing has corrected very meaningfully and the numbers were extremely good. Asset quality pressures were minimal and retail advances remain extremely stable over the next few quarters. Our own take is that valuations are looking extremely attractive for LIC Housing in finance from a price to book perspective. So LIC Housing Finance will also remain one of our preferred picks in this sector.