HDFC Bank, SBI, Bajaj Twins, Zomato, and Swiggy: Key picks Sunil Shah, a fund manager at SRE PMS

Sunil Shah, a fund manager at SRE PMS, shared his thoughts on several key stocks, highlighting opportunities in large-cap stocks such as HDFC Bank and State Bank of India (SBI). According to Shah, these banking giants offer substantial value, given their leadership in the sector. "As money flows into the banking system, these two companies are set to benefit significantly.

Shah also emphasized the potential in non-banking financial companies (NBFCs), specifically pointing to the Bajaj twins—Bajaj Finance and Bajaj Finserv. He noted that while Bajaj Finance is trading near the lower end of its valuation, there’s still room for growth, with a target price potentially approaching Rs 9,000. While the upside may be limited from current levels, Shah sees it as a valuable pick at the current price.

Turning to the energy sector, Shah highlighted Waaree Energies as a strong performer, noting the company's impressive growth trajectory. With an order book of Rs 50,000 crore and strong growth prospects, Shah sees this as a solid long-term investment. However, he cautioned that investors should be aware of the pre-IPO lock-in period, which is set to end around April. He suggested that potential selling after the lock-in period could create an opportunity for new investors.

When discussing food delivery giants Zomato and Swiggy, Shah acknowledged that both companies currently cater mainly to metro and capital cities. However, he believes that expansion into Tier-II cities is inevitable, which could provide long-term growth. He cautioned that investing in these companies requires a high tolerance for risk and volatility, noting that profitability is key to unlocking future growth and boosting market capitalization.

Shah also shared his expectations for the Reserve Bank of India’s upcoming policy announcement, predicting a 25 basis points (bps) rate cut. "A 25 bps cut is the minimum we can expect," he said, anticipating that this move would spark significant momentum in the personal finance sector. Shah noted particular stress in the micro-finance segment and identified gold finance as an area to watch.

Disclaimer: Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.

Search

Reason

ChatGPT can make mistakes. Check important info.