BPCL a buying opportunity, bullish on RIL, says Deven Choksey

“Reliance remains in a buy category for sure. I am remaining bullish on the company.”

UltraTech Group as well as the Ambuja Cement-ACC group are relatively better placed in the cement sector because of the capacity advantage that they have, he added. However, Ramco Cement and Dalmia Cement are becoming equally strong contenders in the second tier as far as the stocks are concerned.

“I would go with the larger cement companies who are likely to produce relatively stronger numbers going forward.”

Businesses that are connected to real estate and that is the housing finance business are always preferred, he said.

“That gives me more confidence because they can have a sustainable run rate as far as the lending and borrowing programme is concerned. So from that point of view, these companies are relatively better if you want to play real estate.”

On IndusInd Bank, Choksey said, “There is definitely a case for rerating of IndusInd Bank. The price to book value is comparatively cheaper. Each of the verticals in which they are operating - particularly the commercial vehicle (CV) segment, the microfinance segment and the gems and jewellery segment – are having relatively better times. So the pressure on the book from the non-performing assets (NPAs) side is reducing. Valuationwise the stock is available relatively cheap compared to others, which is good.”

Among other bank stocks, he continues to like ICICI Bank.