Cochin Shiyard, SJVN & Poonawalla Fincorp: What Ashish Chaturmohta of JM Financial says on these stocks

Ashish Chaturmohta, Executive Director and Fund manager at JM Financial, on Monday said there's some consolidation happening in the market at the higher levels. "Nifty may remain in a broader range between 21,500 and 22,000. Although, the overall bias is positive. Any kind of dips should be looked as an opportunity to go on the long side," Chaturmohta told Business Today TV.

On the stock-specific front, the market expert liked Cochin Shipyard Ltd from the defence space. "With a strong order book positioning, one can expect 15-20 per cent topline growth. The stock has support at Rs 1,300. If it holds the said level, then the counter may see Rs 1,750-1,800 levels," he mentioned. Cochin Shipyard's stock was down 0.90 per cent at Rs 1,350.

The second stock which the market veteran selected was SJVN Ltd. "From the company's current capacity of 2 gigawatts, it is targeting almost 12x capacity in a couple of years. The stock has formed a very strong base around Rs 90. If it holds this support level, then it could hit Rs 125-130 levels," Chaturmohta stated. SJVN shares were up 0.72 per cent at Rs 95.55.

He also liked Poonawalla Fincorp. "The stock may continue to do well despite trading at almost 3.8-4x price-to-book," said Chaturmohta. Poonawalla Fincorp was seen trading 0.83 per cent higher at Rs 463.35.

Meanwhile, Indian equity benchmarks slipped into the red after a slight higher opening today, dragged by FMCG and state-owned lenders. Broader market (mid- and small-cap) shares were also weak as Nifty Midcap 100 fell 0.25 per cent up and small-cap shed 0.23 per cent.

10 out of the 15 sector gauges -- compiled by the NSE -- were trading in the red. Sub-indexes Nifty FMCG and Nifty PSU Bank were underperforming the NSE platform by falling as much as 1.24 per cent and 1.14 per cent, respectively.

On the stock-specific front, UPL Ltd was the top loser in the Nifty pack as the stock cracked 2.19 per cent to trade at Rs 568.5. Tata Consumer Products, Divi's Labs, Hindustan Unilever and ITC slipped up to 1.70 per cent.

In contrast, ONGC, Adani Ports, Hero MotoCorp, PowerGrid and Eicher Motors were among the top gainers.

 

The overall market breadth, however, was positive as 2,022 shares were advancing while 1,655 were declining on BSE.

 

(Disclaimer: Business Today provides stock market news for informational purposes only and that should not be construed as investment advice. Readers are encouraged to consult a qualified financial advisor before making any investment decisions.)

 

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