Buy Tata Consumer on dips, like Bajaj Finance, Cholamandalam, HDFC, says Deven Choksey

Deven Choksey of KRChoksey on Wednesday discussed the fundamentals of the market as well as various stocks.

“Tata consumer remains a good choice. It is getting added into Nifty, so there is enough amount of enthusiasm also further getting added into. This space is particularly liked by many investors now. Any correction in the price would mean the meaningful entry of some of the good long-term investors into this company,” Choksey told CNBC-TV18.

The non-banking financial companies (NBFCs) are rallying, he said.

“I don’t see any new reason for the stock prices to go up except for the fact that demand for credit is continuously growing,” he said.

Speaking about financial stocks, Choksey said, “We continue to stay with Bajaj Finance. That remains a long stay in our portfolio. We have been liking Cholamandalam Investment and Finance Company, so we continue to have preference over there as well. In the housing finance companies (HFCs), HDFC remains a good pick for us.”

On public sector undertakings (PSUs), he said, “Perception always remains a weak point in these companies as far as the stock market performance is concerned. In our portfolio, the PSUs have a very small presence and at this point of time we are not adding anything.”

Choksey also said that better times for commercial vehicles (CVs) has started.

“We are in for about three-four years of a good cycle for the CV segment. To me, Tata Motors and Ashok Leyland look interesting. Both of them have a relatively stable business model. These companies are ready for relatively better times, both these companies remain in our portfolio and continue to attract our attention,” he pointed out.