Geojit's Gaurang Shah bullish on L&T, Titan; advises caution on JP Power, Reliance Power

Gaurang Shah, Senior Vice-President at Geojit Financial Services, on Wednesday reiterated his positive stance on select blue-chip counters, particularly Larsen & Toubro Ltd (L&T) and Titan Company Ltd, while urging investors to stay away from a few beaten-down stocks such as Jaiprakash Power Ventures Ltd (JP Power) and Reliance Power Ltd (RPower) at current levels.

Speaking to Business Today, Shah said he remains optimistic about L&T due to its diversified business portfolio and strong execution record. "We've been positive on L&T for a very long time. It has got diversified business -- be it complex engineering, infrastructure, hydrocarbon, turnkey projects or the big theme that I am extremely positive about, which is defence," he said.

Calling the company "one of the most investor-friendly," Shah noted that L&T has consistently rewarded shareholders through bonuses and dividends. "Every two to four years, when the appropriate time comes, the management gives out either a 1:1 bonus or one bonus for every two shares held. Along with that, you have dividends and a stellar performance through execution of a huge order book," he added.

The market veteran sees an immediate short- to medium-term target of around Rs 4,000 for the stock and believes the company's long-term growth prospects remain strong.

On Titan Company, Shah maintained a bullish view as the festive and wedding seasons approach. "All that glitters is indeed gold in this case, with precious metals such as gold, silver and platinum trading at historic highs. With the festive season gaining momentum and the wedding season ahead, we continue to maintain a positive view on Titan from a long-term perspective," he said.

He also highlighted that Titan's performance is not limited to its jewellery segment. "The company's other verticals, including wristwatches, eyewear, CaratLane -- which it acquired some time back and is performing well, especially in platinum jewellery sales -- and other accessory segments, are also contributing positively. We see an upside target of near Rs 4,000," Shah added.

On the power sector, Shah advised investors to avoid JP Power and RPower and suggested to focus on established players instead. "It's more prudent to go with established players such as NTPC Ltd, Tata Power and JSW Energy. Also, keep an eye on transmission and distribution names like Power Grid," he said.

According to Shah, the government's clear policy focus on clean and green energy, rising generation capacity and the rollout of smart meters have structurally improved the outlook for the power sector.