homemarket NewsMarkets believes Omicron can be neutralised; positive on Nykka, ICICI Bank, says Gautam Duggad
Markets believes Omicron can be neutralised; positive on Nykka, ICICI Bank, says Gautam Duggad
Investors believe the Omicron variant of coronavirus can be neutralised, hence the recent rebound, Gautam Duggad of Motilal Oswal Financial Services said. He said he is positive on financial stocks like ICICI Bank, HDFC Bank, Kotak Mahindra Bank, and Axis Bank.
Investors believe the Omicron variant of coronavirus can be neutralised, hence the recent rebound, Gautam Duggad of Motilal Oswal Financial Services said, adding that a correction is healthy for this bull market.
“We have seen some knockdown, about 7-8 percent. Last 2-3 days we have seen some concerns getting eased on the new COVID-19 variant (Omicron), but it’s too early; people need to watch on that front, at least for couple of more weeks before things get more clearer and data emerges,” he said.
Talking about MOFSL's top ideas, he said the brokerage will buy Whirpool on dips, though it has been a bit of an underperformer. He expects both revenue and EBITDA to grow at a CAGR of 20 percent over the next two years.
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He also said valuations on financial stocks look relatively attractive. Among banks, the brokerage is positive on ICICI Bank, HDFC Bank, Kotak Mahindra Bank, and Axis Bank.
“If there is one sector which offers the most reasonable valuation spectrum in the mainstream space then it is financials. We have seen fundamentals improve there, disbursements picking up, collection efficiency improving," said Duggad.
In the QSR space, the brokerage prefers Jubliant Foods, he said. In the new-age startup space, the brokerage is positive on Nykaa as its business prospects look positive.
“From the listings which have happened recently, Nykaa is one business which we find quite attractive given the dominant positioning that they have in the segment and at the same time the greater acceptance that they are finding in not just metro and tier-one cities but beyond that as well,” Duggad said.
(Edited by : Yashi Gupta)
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