Top 5 power & realty stocks to bet on: CA Rudramurthy

CA Rudramurthy BV, MD, Vachana Investments, says “we are headed towards 23,000 to 23,200 very soon and in April itself. The Bank Nifty is headed towards 50,000 and this market is definitely a buy on every dip. I am very bullish on public sector enterprises and public sector undertakings and every dip there has to be used as a buying opportunity. “

Rudramurthy also says that in power, two stock picks are Tata Power & Power Grid while three top picks in real estate are DLF, Godrej Property and Oberoi Realty.



What do you make of this sideways move because at one point of time, we are talking about record high levels, but that 22,500 level is really acting as a bit of a hurdle zone?

CA Rudramurthy BV: First of all, 21,800 is a strong support which markets defended and from there we saw a very swift move to levels closer to 22,500. Having seen this very fast move in a very short duration, the market is now consolidating.

I am very clear, the charts are very clear, that we are headed towards 23,000 to 23,200 very soon and in April itself. The Bank Nifty is headed towards 50,000 and this market is definitely a buy on every dip. I have been telling since Diwali that even after the midcap and smallcap small correction, there are still a lot of opportunities which are stock specific, buy-this-dip types and as we go towards the election, I am expecting a much bigger rally. I am very bullish on buying every dip in this market. The Bank Nifty is headed towards 50,000 and Nifty towards 23,000-23,200 in April.

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But what do you make of this big move in the real estate sector? They had a very good year last year and this year when people were expecting that maybe the peak has already passed, the sector continues to surprise us?

CA Rudramurthy BV: Definitely, yes. Real estate was my top pick during Diwali. I was telling people to look at stocks like DLF, Oberoi Realty, Sobha, all stocks that have done fabulously well. I never expected such a big move in such a short time. In hardly a span of three-four months from Diwali, we are seeing such a big move. However, this sector and these specific stocks can still continue on their up move. But I do not see a much bigger move coming from here. We might see an index kind of 15-20% return from now to next one year.

My three top picks in real estate will be DLF, Godrej Property and then Oberoi Realty.

But other than that, on the charts itself, any buy recommendations for our viewers?

CA Rudramurthy BV: I am crystal clear on my likes. I might go wrong, but I do not want to give a two-sided view. PSUs are yet to perform. They have just started their rally. In the last one-and-a-half years, whatever move you have seen in PSUs is just the beginning of a decadal rally of what we will see in public sector undertakings and public sector enterprises.

I continue my positive view on power stocks like Power Grid, NTPC. Even if you look at metals, stocks like SAIL, NMDC and PSU bank stocks like SBI, Canara Bank, Punjab National Bank and also defence stocks like BEL as also public sector enterprises like Concor, are stocks which can still perform well from current level. Every dip has to be used as a buying opportunity. I am very bullish on public sector enterprises and public sector undertakings and these are some of the names which I like.

Other than that, there are two stock specific recommendations – Tata Power looks very good to me. Tata Group stocks as such do very well from current level. Every dip is a buying opportunity. We have a target of Rs 450 on Tata Power with a stop loss of Rs 400. Power Grid is another stock which I like and am looking at it with an initial target of Rs 320 and a stop loss of Rs 265. This is a market to be bought on every dip. PSUs will continue on decadal rally, buy every dip.

Let us talk about two stocks that have been buzzing today as well from the Aditya Birla Group. First, let us talk about Aditya Birla Fashion, that is ABFRL, and let us compare it to Trent. What is your view on ABFRL and Trent? Trent has already seen such a run-up. ABFRL also is seeing a good run-up. What is the view?

CA Rudramurthy BV: First a word on ABFRL. A strong support for this stock is somewhere at around Rs 190-200 zone and from there, we have seen a very big price action today and a close above levels of Rs 235 will be very positive for ABFRL. The stock is headed towards Rs 265 and then eventually towards Rs 300. So, if this is my stock specific view on ABFRL.

Trent for me is a stock to buy at any price. I know it has given a big up move from levels closer to Rs 1600, 1700 and in the last two quarters, the stock has doubled. It is an F&O stock. However, let us understand that these are stocks to buy at any price and to keep in your portfolio, it is your next Titan, it is your next Bajaj Finance.

Yes, I understand pricing and valuation is a concern, but these are stocks where you have clear visibility of earnings and they do not come at cheap price. Whenever you get market corrections, use that opportunity to buy these types of quality stocks and for me Trent is again a buy on every dip or at any price and hold it in your portfolio.

Roy Walsh

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