Achi news desk-
One of his picks among small finance banks is Ujjivan Small Finance, which Gaurang Shah suggested investors buy for the long term
Geojit Financials VP Gaurang Shah said TVS Motor could reach 13% from current levels in the long term.
The investment services company, Geojit Financial Services, Sr. VP, Gaurang Shah announced to buy two shares. One is India’s largest public sector bank, State Bank of India (SBI). And the other is a home-grown car company, TVS Motor. Shah gave a price target of Rs 900 on the SBI and advised investors to maintain a stop loss of Rs 805. According to him, “SBI has posted a steady improvement in financial results. We expect the improvement in SBI’s results to continue in the coming quarters. We expect its loan book to continue to grow in the future. Its gross and net APRs and provisions have been steadily declining.” On Monday, the survey jumped three percent and closed at – Rs 826 per unit on BSE.
In his second pick, Shah gave a price target of Rs 2,300 and a stop loss of Rs 2,019. Shah said, ‘There was a time when the stock rose more than its peers, Hero Motocorp and Bajaj Auto. After that, he showed correction and downgrade he remained range bound. Now, Rs 2,000 is a good level for a long term position in the stock. On Monday, TVS Motor closed at Rs 2,036 apiece on the BSE.
When asked about small finance banks, Shah said, “Repayment rate is close to 90% in SFBs. The reason is that these banks sanction low card size loans. So, borrowers can repay loans.”
One of his picks among the SFBs is Ujjivan Small Finance, which he suggested investors buy for the long term.
Among other sectors, Shah said he is also bullish on sectors like construction, logistics, innovations, etc. According to him, the Indian government’s push for local manufacturing and export promoters is pushing well for these sectors. He has a positive outlook on the real estate sector. He advised investors to choose Prestige Estate in the relevant complex.
Regarding the construction sector, Shah said investors can bet on the likes of Tata Steel, Hindalco, JSW Steel and JSPL.
For renewable energy stocks, Shah recommended Tata Power, NTPC and CESC. According to him, he prefers these three companies over other companies from the relevant sector.
Published: April 29, 2024, 8:12 PM IST
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