Check out: SMC Global Sec views on LT, JSPL, TCS, HDILPosted on Wednesday, July 13, 2011 - 12:01 pm
In an interview with CNBC-TV18, Jagannadham Thunuguntla, strategist and head of research of SMC Global Securities, speaks about stocks like Larsen and Toubro , Jindal Steel & Power , Coal India , Tata Consultancy Services , and Housing Development and Infrastructure .
Below is the transcript of his interview with Latha Venkatesh and Sonia Shenoy of CNBC-TV18. Also watch the accompanying video.
Q: What is your call on L&T?
A: L&T may not see any outperformance any time soon. There is order book pressure, the execution related pressure and the inflation related pressure. I think the upsides are fairly capped.
Q: What about JSPL?
A: In any industry wherever there is a regulatory overhang, the stocks tend to underperform. There are much better stable companies an investor can look at. For example, in the same sector, we have Coal India can be a better buy at Rs 350-360 instead of JSPL.
Q: What is your take on TCS?
A: I think one can stay invested. There are not many alternatives and opportunities available in the market in the frontline stocks. Whenever foreign institutional investor (FII) related inflows come, I think TCS will be one of those beneficiaries. Because of lack of alternatives, I am sure the money should go into TCS. I think one can easily stay invested.
Q: What about HDIL?
A: Real estate stocks may see a technical bounce. But baring that, from a fundamental point of view and from the smart money and rational purchase point of view, I do not see much comfort in the real estate space. In the next two-three months, there is a decent chance of bounce. Whenever the bounce comes, probably one can move out from that.