Most PSU banks offer decent upside in the range of 20-25% from current levels: Neeraj Dewan

How should one view Adani Group of stocks after GQG buying into these counters?

A big renowned fund putting in money in the Adani Group definitely gives some confidence to other investors. And even before the news came in, the last couple of days were good for Adani Group because of some road shows which they have been doing.

But going forward investors need to understand which Adani companies valuation-wise make sense to hold or which to buy at the current levels. Other watch-outs shall be the announcement with regard to the utilisation of the funds that the promoters have secured and the kind of corporate governance sought from the Group.

Within the PSU Bank pack, do you see these moves as an incremental upside or are they just flash in the pan moves?

They can indeed be incremental upsides in the PSU Banks. Until the Adani news came out, PSU Banks were performing very well and then dealt a hard blow. For the last several quarters now, PSU Banks have been posting good financial performance. Their credit growth stands at a healthy 20% and 4 or 5 of the larger banking names are able to put a good control over the asset quality. Capital adequacy ratio at the banks is good, NIMs have also been maintained and all this should reflect going ahead too. Furthermore, the ongoing quarter should also turn out to be a decent one for banks. So, factoring all this, most of the banks offer a decent upside in the range of 20-25% from current levels.

What is your take on the new-age tech stocks and are you seeing any promising names?

Zomato with its kind of distribution network has an unparalleled business model in place. Besides, there is nothing worth in these companies to channelise your money. Neither valuation wise these stocks are attractive.

We need to see these companies’ making some profits and see two-three quarters of decent growth in profit, then only we can take the call.

What is your take on the entire real estate pack, Godrej Properties, Macrotech Developers and the other marquee names?

If we talk about DLF, the kind of sales they are able to log or the recent DLF project where they could sell 1100 apartments each priced at Rs 7.5 crore in just 2-3 days, shows that there is no weakness in the luxury or the higher end apartment category. There is though some slowdown in the lower end of the apartment or those sub 50 lakhs. On the demand side also the situation looks ok.

Nonetheless as real estate is also an interest rate-sensitive sector, one needs to watch out for one more inflation data, as the last one also proved to be a dampener. Any respite from the inflationary pressure, may fuel the rally from the current levels because most of the stocks have corrected and still they are 10-15%, 20% below the high that they saw just a few months back.

What is your take on the metal pack as some of the counters from the space have really underperformed in the last one year? Do you see the year 2023 to be the comeback year for metals?

Yes, it looks like the year 2023 will be a comeback year for the metals as the demand is seeing an uptrend. Also, some of the counters from the space are showing initial moves. Say, if we talk about Jindal Stainless i.e. the sole company operating in stainless steel, has been doing very well. Besides, other non-ferrous names such as Vedanta, aluminium, zinc stocks, also look interesting. So, if the demand uptick sustains which has been aided by China re-opening, we can see metal stocks performing better than last year.