Geojit's Gaurang Shah bullish on SBI, TVS Motor
One of his picks amongst the small finance banks is Ujjivan Small Finance, which Gaurang Shah has suggested investors can buy for long term
Investment services company, Geojit Financial Services, Sr. VP, Gaurang Shah has given buy call on two stocks. One is India’s largest public sector bank, the State Bank of India (SBI). And, the other is homegrown automobile company, TVS Motor. Shah has given a price target of Rs 900 on the SBI and has advised investors to keep a stop loss of Rs 805. He said, “SBI has continuously posted improvement in financial results. We expect SBI’s result improvement to continue in coming quarters. We expect its loan book to continue to grow going forward. Its gross and net NPAs and provisions have constantly declined.” On Monday, the scrip jumped three per cent to close at Rs 826 apiece on the BSE.
On his second pick, Shah, has given a price target of Rs 2,300 and stop loss of Rs 2,019. Shah said, ‘There was a time when the stock had rallied more than its peers, Hero Motocorp and Bajaj Auto. Then, it showed correction and offlate it has remained range bound. Now, Rs 2,000 is a good level for taking long term position in the stock. On Monday, TVS Motor closed at Rs 2,036 apiece on the BSE.
On asked about small finance banks, Shah, said, “Repayment rate is near 90 per cent in SFBs. The reason is that these banks sanction low ticket size loans. So, borrowers are able to repay loans.”
One of his picks amongst the SFBs is Ujjivan Small Finance, which he has suggested investors can buy for long term.
Amongst other sectors, Shah, said he is also bullish on sectors like construction, logistics, renewals, etc. According to him, the government of India’s push on local manufcaturing and export augers well for these sectors. He is having a positive outlook on the real estate sector. He advised investors can pick Prestige Estate in the relevant precint.
On construction sector, Shah said investors can bet on likes of Tata Steel, Hindalco, JSW Steel and JSPL.
On renewable energy stocks, Shah has recommended Tata Power, NTPC and CESC. He said, he prefers these three companies to other from the relevant sector.