Would you recommend placing a new bet on Bel, Hal, or other defence stocks?
Neeraj Dewan: If someone is a long-term investor, even after gradual expansion, defense continues to be stronger in the long term as there is a space in which budgetary spending is done and there may be opportunities for export.
In the short term, it’s definitely because there could be a significant increase in stocks over the past few months and some consolidation could occur. But even now, for long-term play, we can still pick up these stocks and continue to invest in the long term.
Let’s talk about some of these shipping companies, even looking at some of the subsectors within the defense. Many of them have seen the runup again in the past few trading sessions. Given the surges you’ve seen in some of these names like Sci, Garden Reach, Cochin Shipyard, and so on, are you advised to buy with all these stocks?
Neeraj Dewan: I’m still positive at companies like Garden Reach and Mazagon Dock. Sci could be affected as prices are rising due to Iran-Israel conflict, which could lead to a move. Let’s assume that it is calm and there is an armistice there. You may get some negative response from the SCI. So, I’m not positive about stocks like SCI or Cochin’s shipyards, but things like Mazagondok and Garden Reach are long-term theatre.
What is the analysis of BioCon? There have been a lot of easing in terms of regulatory hurdles, so I don’t know how closely you will track this. We also have a considerable amount of funding now. The next big overhang seems to be inheritance, but up until then everything seems to be fine.
Neeraj Dewan: In fact, there is also a lot of news flows about inheritance issues, and there are many whether stock sales can be made. So there has been a lot of speculation about the stocks before. And now there’s this QIP. You’ll be interested in seeing who will invest in QIP, which will keep your inventory positive. However, in the medium term, putting this type of supply in the market means that large investors will invest in stocks in the long term and there will be no greater demand for tracking.
So, over the medium term, stocks may not give such a move, but this kind of inflow will work out in the long term, and inventory should work out. Number performance hasn’t been that great these days and we need to improve on moving forward as well. If this type of capital improves as it comes in over the long term, inventory should be good.What do you think about Asian paint? Reliance has stacked up all Asian paint stocks. Will this change investors’ perceptions of stocks now that Reliance has been offloaded? Asian paints were in the middle of competition and in the paint price war. Do you think it’s a good time to see the landing, or will it be slower to move on?
Neeraj Dewan: As far as Asian paints go, some more integration will be maintained. There is a short-term movement as stocks have been declining at these levels for quite some time. Therefore, because a long-term investor and a large portion of the portfolio has held Asian paint stocks over the years, those who get this opportunity to get this opportunity to add this opportunity to the portfolio are making good money there. So they might want to add more. So, short-term movements can occur actively, but in the medium term, they may become slower and more integrated into Asian paints.
