Market expert Prakash Diwan shared his thoughts on various stocks today, including Ola Electric, during his interaction with CNBC-Awaaz. Diwan expressed concerns over the current valuation of Ola Electric, highlighting that despite the excitement around electric vehicles, the sector is still in an experimental phase. He mentioned that Ola’s business, while promising, lacks the scalability assurance that long-term investors typically seek.
According to Diwan, the stock is currently overpriced and if he held shares of Ola, he would have booked profits at this stage. He emphasized that while the company might need more time to fully establish itself in the market, it does not have an investment appeal for long-term investors at the moment.
BSE Stock: A Buy on Dips Opportunity
Prakash Diwan was quite optimistic about the Bombay Stock Exchange (BSE) stock. He noted that BSE presents a unique platform play, and with the growing market, it is well-positioned for strong growth. However, he pointed out that the stock is currently not available on NSE, which might limit its exposure. Nevertheless, Diwan advised investors to buy BSE on any market dip, as he sees significant potential for future growth.
Bajaj Housing Finance: Expensive for Value Investors
While discussing Bajaj Housing Finance, Diwan revealed that he did not invest in this stock during its IPO or after its listing. He believes the stock is quite expensive at current levels, making it unattractive for value investors like him. Diwan pointed out that the stock’s price-to-book ratio is high, which can be a barrier for traditional investors who seek value.
However, he acknowledged that momentum investors might have benefited from post-listing gains. He cautioned retail investors to be wary of the stock’s high price, saying that although momentum may push the stock even higher, value investors should avoid this stock for now due to its hefty valuation.
Housing Finance Sector: Signs of Consolidation
Looking at the broader housing finance sector, Diwan believes that the growth phase may have already peaked. He predicts that after the IPO of Bajaj Housing Finance, there could be consolidation within the housing finance companies. This indicates a possible slowdown in new growth opportunities, and investors should stay cautious in this segment.
Hero MotoCorp and Bajaj Auto: A Positive Outlook
Turning to the auto sector, Diwan was upbeat about both Hero MotoCorp and Bajaj Auto. He noted that both companies have shown steady performance, but Bajaj Auto might benefit more from the improving rural economy, especially after a good monsoon season. He hinted that Maruti could also see growth soon, adding that the auto sector holds promise in the coming quarters.
IT Stocks: Possible Time Correction on the Horizon
While discussing IT stocks, Diwan said there is some uncertainty around the sector, particularly with the US Federal Reserve’s rate cut decision. If the Fed does cut rates, it could lead to a time correction in IT stocks. Diwan suggested that while IT stocks might see some short-term volatility, mid-cap IT stocks still offer investment opportunities. He specifically mentioned Tata Technologies as a stock to keep an eye on.
Banking and Financials: Ready for a Boost
According to Diwan, banking and financial stocks are poised to gain momentum if there is a rate cut by the Fed. He believes that money may shift from IT stocks to the banking and financial sector, which could see a boost in the coming months. This rotational shift presents a potential investment opportunity for those looking to capitalize on banking stocks.
HOEC: Prakash Diwan’s Top Pick
Finally, Diwan recommended HOEC (Hindustan Oil Exploration Company) as his top pick for the day. He sees significant growth potential in this oil field company and advised investors to consider this stock for a 1-2 year investment horizon. With energy prices fluctuating and global demand still strong, Diwan believes HOEC could deliver strong returns in the medium term.
In summary, Diwan offered a mix of caution and optimism across different sectors, highlighting stocks with potential while advising investors to be wary of overvalued options. His insights provide valuable guidance for navigating the current market dynamics.
(Disclaimer: Stock investments are subject to risks. Always consult with a financial expert before making any investment decisions.)
