Buy Coal India, says Saurabh Mukherjea

Written By Unknown on Kamis, 15 Mei 2014 | 14.03

According to Saurabh Mukherjea, CEO-Institutional Equities at Ambit Capital, one may buy Coal India.

Saurabh Mukherjea, CEO-Institutional Equities at Ambit Capital told CNBC-TV18, "Power companies haven't delivering the best volume growth that you would expect but I reckon  Coal India will do a turnaround in volume growth in the year ahead. It has derated continuously since its IPO four-five years ago. This should be a good time to buy a company like Coal India."

"In the two-wheeler space  Bajaj Auto has lost a lot of fans over the last couple of years because of the market share losses. I reckon Bajaj's market share will come back as urban recovery steps in over the next year. As an export power house I don't think it has any equal in our country. So something like Bajaj Auto, good company, available at reasonable valuations because of the whole fear about Honda," he added.

"Staying with PSU's I think the PSU banks are looking more and more interesting. The PJ Nayak committee report day before yesterday, a lot of that will get accepted both by the RBI and by the finance ministry. And that will presage a fairly powerful rerating of some of our biggest public sector banks, so that is how I would go about it."

"I am looking for quality, well run companies in the sense strong balance sheets, credible franchises but available at a reasonable valuation because of some blemish whether it is market share loss to Honda, whether it is perceptions of corruption etc. You want companies which are available at reasonable valuations because if you buy fully valued stocks, fully valued names such as  Nestle or HDFC Bank , you really won't be able to participate in this recovery over the next couple of years."


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