Dipan Mehta, Director at Elixir Equities, is very positive on public sector undertaking (PSU) banks.

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"Next 12 months would be a golden period as far as PSU banks are concerned in terms of stock price returns. They may deliver appreciation even higher than their private sector peer group, so very positive on PSU stocks,” he said in an interview with CNBC-TV18.

He believes that PSU banks are going to be big beneficiaries of non-performing assets (NPAs) resolution as and when they do take place.

On Bandhan Bank, he mentioned, “Bandhan Bank will be the biggest beneficiary. If overall recoveries are picking up well in Assam and West Bengal, then you could see lower credit cost coming to Bandhan Bank and that is the benefit for the bank and it could give good appreciation to the stock price over the next six-twelve months."

He also talked about Nazara Technologies. "Good pedigree, great track record and if you want to play this very exciting investment theme of gaming and increase time and money spent on gaming and related App, then Nazara is the only stock which is available for you to bet on at this point of time,” he stated.

"However, one needs to be a bit careful and have a slightly longer-term view on this stock. 60-70 percent appreciation could be a good price point to enter the stock," he added.

According to him, the best period for metal stocks is behind them.

"No doubt, they will report excellent numbers in next two-three quarters on account of increased realisations. However, going forward there will be resistance as far as an increase in prices is concerned in a lot of these metal companies. I would typically like to buy steel and aluminium when they are at the bottom of the cycle from the long-term investment perspective and these stocks are not trading at the bottom of the cycle. So we could have a further 10-15 percent trading rally,” he said.

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(Edited by : Priyanka Rathi)

First Published:Mar 30, 2021 10:30 AM IST