Latest news with #NeerajDewan
Time of India
5 days ago
- Business
- Time of India
Better to bet on PSU banks, realty and infra stocks; FMCG, railways good for short-medium term: Neeraj Dewan
Neeraj Dewan , Market Expert, says PSU banks and real estate companies are showing promise, fueled by interest rate cuts and strong balance sheets. Infrastructure and construction sectors benefit from increased government spending and robust order books. FMCG looks favorable in the short to medium term, supported by timely monsoons and import duty cuts. Railway stocks have potential in the short to medium term. Where are you picking your spots in the market? The last time we spoke, you were bullish on ethanol-based companies. You were bullish on some specialty chemical companies also. Anything else which is there on your radar? Neeraj Dewan: Recently, PSU banks were looking attractive. That is where the moment also started. Some more moves should be there in PSU banks because initially, of course, when interest rate cycle is going down, there is some pressure but we already had two cuts and the third is also expected. Going ahead, they will get further benefits and some credit growth will also come in. A lot of them have very strong balance sheets now. So, PSU banks are where the action can continue. Besides that, look at the real estate companies like DLF and Godrej which are doing well. They have also picked up from the low level that they saw. But even smaller ones are looking interesting there. They are giving good guidance as far as pre-sales are concerned, as far as gross development value is concerned. One can also look at stock specific ideas in construction and infrastructure where last quarter, we saw a good pickup in government capex as well. So, order books are strong and we saw decent results from L&T. Execution should pick up now and this year also can be a good year for infrastructure and construction-related companies. Live Events You Might Also Like: Vodafone Idea share price target above Rs 12? What brokerages say Is there anything that you like within FMCG? For a longer-term play, are there better opportunities in the market? Neeraj Dewan: In the short to medium term – in the next three-four to six months – FMCG looks good to me. If monsoons continue to be on time and if we have a decent monsoon, if inflation stays low, all this and plus the recent import duty cut by the government augur well for the FMCG space. Britannia, of course, has done well from the 4700-4800 levels it was languishing in earlier. Hindustan Lever also looks good. FMCG should be part of the short to medium-term portfolio to give you a decent return. There has been a re-emergence of the defence and railway packs and it is pretty much across the theme when it comes to defence in particular. Is there any opportunity even after the runup that we have seen in both these segments? Neeraj Dewan: Post the recent Pakistan clashes, I was positive on defence because the stocks had corrected and there was a long-term view that defence should do well. The kind of Budget which we have in defence and the Make in India push the government is doing. Keeping that in mind, there was a short-term spurt because of geopolitical concerns. The short-term spurt has made them a bit expensive for the shorter term. But if someone has a longer-term view, one should look at opportunities whenever there are some corrections in defence stock. Stick to the larger one like Mazagon Dock or BEL or HAL. They have done really well for the last couple of years also and in the short-term, I would rather wait and look at opportunities to get into these stocks. The railway stocks have started moving but the move has not been so sharp on the upside right now. There is still potential there even for the short to medium term as order books are good and execution has started picking up. The execution started picking up late in the last quarter. We do not see that full impact coming in the March quarter. Going ahead, we may see improvement in execution in the railway companies. So, railways is one sector where even in the short to medium term, there might be some opportunity. You Might Also Like: Can India become the services factory of the world? Gautam Trivedi explains What is your take on Vodafone Idea because there is a loss in the bottom line though the ARPUs are seen increasing. The industry is working with an assumption that going ahead, there could be further tariff hikes and analysts are estimating that to be 15%. There is also chatter around the company being in talks with the government for some concessions in dues. What is your take on Vodafone Idea? At Rs 7, how do you see the stock? Neeraj Dewan: I have been avoiding this stock at whatever prices. Whatever news flow has come their way, has paid off till now. So, I will continue with my stance. Because the most important thing is you should start gaining some customers and that is not happening for Vodafone Idea. Till that happens meaningfully for a few months, then only can one make a base case where Vodafone Idea makes a bottom and we may see some improvement. But I do not see that happening right now. So, I would still avoid it. There may be a couple of rupees' move on the upside. As a percentage, that might look good to some people from a trading point of view. But I am avoiding it and I will not really go into it. Help us with your take on United Spirits because a note came from JPMorgan today where they have gone ahead and upgraded the rating on this counter and also raised the target price to Rs 1,760. Do you like this stock? What is your overall take on the Alcobev sector? Neeraj Dewan: Yes, I like the space and I like United Spirits. But I do not see too much of an upside from these levels as far as United Spirits is concerned. I had advised and entered United Spirits at about 800, 900 levels and it has taken a lot of time to reach these levels also. If someone wants to keep some alcohol stock in the portfolio, United Spirits is a good stock to have, but one cannot expect too much upside from these levels and not a very good return from United Spirits as far as the couple of years is concerned.
Time of India
29-04-2025
- Business
- Time of India
Avoiding IT, ferrous metal stocks for potential headwinds from US: Neeraj Dewan
Neeraj Dewan is cautious about large and mid-cap IT stocks due to high valuations and potential US headwinds, anticipating profit-taking. He also avoids ferrous metals like Tata Steel due to a lack of clarity and weak rebound. Dewan suggests caution on non-ferrous metals and sees continued outperformance in defence stocks like Mazagon Dock and HAL. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Market expertis currently avoiding largecap as well as midcap IT stocks due to their high valuations and potential headwinds from the US, anticipating profit-taking. He also remains cautious about ferrous metals like Tata Steel , citing a lack of clarity and weak rebound despite corrections. Dewan suggests waiting for more clarity before considering dips in non-ferrous metal especially the OEMs. I do not think there is too much export happening for OEMs like Mahindra & Mahindra or any other OEM manufacturer. Even if they have, they will have a very small part going is some auto ancillary exposure with two-three companies whose names come up again and again – be it Bharat Forge , Sona BLW, or Motherson Sumi . Even Motherson Sumi for that matter, has a lot coming from Europe. So the exposure is there but it is not that alarming for someone to really be scared of, especially as far OEMs are concerned.I am still avoiding buying these at these levels. Maybe performance-wise, we have seen a couple of good numbers coming from midcap IT through short-term bounce backs, but they are still expensive and are not that cheap because if there is any headwind because of the US, the stocks are expensive and so some profit-taking may happen in these stocks. So, I am really not looking at buying midcap IT even at these defence has outperformed because earlier also, when the market had corrected, we had been recommending stocks like Mazagon Dock which had come to Rs 2100-2200 levels. HAL was available at Rs 3800-3900. So, these stocks from those levels have come up.I feel that the outperformance may continue for some more time. My targets are a little higher. So I booked some profit in Mazagon Dock, recommended some profit taking in Mazagon Dock, but still holding on to the significant chunks even in Mazagon Dock for clients and even HAL for that matter and there are small stocks also which have been doing well like Zen Technologies . They have been doing well and even they should continue doing is still some outperformance. Plus, there is definitely order flow which is coming their way. For shipping specifically, further orders are expected for companies like Mazagon Dock and Garden Reach Shipping. If someone has been able to get into them at lower levels, they should hold on to them, and ride from these levels to get another upside of about 10-15%.Yes, there is definitely IT. I am very stock specific now, I am not looking at sectors and looking at buying into sectors. Metals is one space which has global linkages and there you have seen something like a Tata Steel correcting a lot, we have seen good corrections happening even after that 200-day import duty that, you did not see any up move happening in metal. So, metal especially the ferrous ones there is still some headwind, there is still not clarity. So, even though the stocks have corrected there I am not looking at buying into those names. The non-ferrous space was still looking at some opportunities, so there it was again the stocks had corrected and they have not been able to bounce back smartly like other sectors would have bounced back from lower levels. So, this can be another space where one can wait to get some clarity if one needs to buy the dips.
Time of India
29-04-2025
- Business
- Time of India
Top 3 stocks Neeraj Dewan bought and sold in this volatile market
Neeraj Dewan , Market Expert, says tariff turmoil threw up very good corrections. Mazagon Dock , Garware and Godfrey Phillips corrected during the tariff turmoil in early April. These are the three stocks he had bought at lower prices. He had recommended them also. These stocks have given a decent return over the last two-three weeks and he had added them during the fall and also booked some profit as the market surged. The markets have been a happy hunting ground for everybody. Where have you been shopping and what is your incremental strategy going forward? Neeraj Dewan: Earlier, the private sector banking stocks were looking very attractive and that is where we got a good return and now even PSU banking numbers are coming. So, there also, strength is visible in the balance sheet, in asset quality. So that is one sector which I feel that should do well going ahead. Though markets have come up a lot since it touched 22,000, it touched that twice and we have been recommending buying close to those levels. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Play War Thunder now for free War Thunder Play Now Undo Now the private sector banks have moved up from those levels and now it is again very stock specific. You cannot just be buying sector specific like it was earlier at 22,000, 22,500 level. Now, one needs to be very careful again because the result season is on, we need to look at the full year results, next year's commentary, and then take a call. It should be very stock specific. What stocks are you looking at? Were you impressed with Reliance's number? The Street surely was. The stock has added a significant amount to its market cap, above its 200 DMA and a 5% move. When was the last time we saw that on Reliance intraday? Neeraj Dewan: Yes, absolutely, after it touched 3,000 before the bonus. So, the stock has not really performed. In the last few days, it has started performing. So, now, the stock can go to Rs 1,500 levels and should stabilise at those levels. The numbers were very good, especially the retail and Jio has been doing well for them and retail also contributed significantly which was a surprise for everyone, that is why we saw that kind of a stock reaction. So, Reliance should do well even from these levels because six months back, it was higher than this price at Rs 1500 plus. If you are holding on to it, you should continue to hold on to Reliance. Live Events You Might Also Like: Biggest call is to conserve money and stick to old warhorses like banks: Dinshaw Irani Beside that, there are the PSU banks , some railway selective stocks because they had corrected a lot and infrastructure is one space I am positive on. Then, there are power sector stocks which have not really done that well over the last one year. So, one should look at opportunities there. What would it mean for M&M and what it would mean for the peer group, Tata Motors case in point? Neeraj Dewan: Over the last couple of years, M&M has been performing very well, especially their EV and SUV segments, and now they are strengthening their bus and truck segments. But with the monsoon forecast, even tractors should do well for them. They have a very good basket and if you compare to Tata Motors, we still have that risk of Jaguar Land Rover, the global risk, the tariff risk that kind of a risk is not there in Mahindra & Mahindra like is there for Tata Motors. So, Mahindra & Mahindra in the four-wheeler space and TVS Motor in the two-wheeler space, the way they have positioned themselves, the way they focused and the way sales have been growing, margins have been inching up and even now if you compare it on valuation front, the stocks are not very expensive. They are not in that very expensive category. So, with the kind of performance and also a very good deal with SML Isuzu, Mahindra & Mahindra should be there in the portfolios. It is a good stock to hold on to. What have been your last top three purchases and where have you booked some gains in this rally? I mean what did you buy on dips? What are you selling as the market is going up? Neeraj Dewan : In the tariff turmoil, we got very good corrections. Earlier, I had recommended stocks like Mazagon Dock. I recommended stocks like Garware which had fallen because of the tariff headwind. Godfrey Phillips because the company was doing very well and the foreign partner wanted to increase the stake. The stock corrected during the tariff turmoil in early April. So, these are the three stocks which we had bought at lower prices. I had recommended them to my clients and plus BSE. These three-four stocks have given a decent return over the last two-three weeks. These are the ones which I had added during the fall and which are the ones where I booked some profit also. You Might Also Like: Bullion Breakout? Analysts weigh in on gold investment strategy ahead
