We are buying Bajaj Finance on all dips: Saurabh Mukherjea Discusses His Portfolio Picks

Discussion in 'Must-Read Interviews, Articles & News Items' started by Arjun, Dec 22, 2020.

  1. Arjun

    Arjun Chief Executive Officer (CEO) Staff Member

    Mar 19, 2015
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    Saurabh Mukherjea has discussed his top portfolio stocks in a recent interview to CNBCTV18.

    Bajaj Finance

    Bajaj Finance, the blue-chip multibagger NBFC stock, is known to be one of Saurabh Mukherjea's all-time favourite stocks.

    When the stock had crashed due to the CoronaVirus, he had advised us to buy the stock aggressively alongwith HDFC Bank and Kotak Bank (see Saurabh Mukherjea Recommends Three Stocks Which Are Looking “Incredibly Juicy And Attractive”).

    Saurabh confirmed that he is still bullish about Bajaj Finance despite the steep run up in the price.

    "We are buying Bajaj Finance at all dips", he said.

    Our weightage for Bajaj Finance has been for a long time. Around 9 percent of our consistent compounded portfolio will be Bajaj Finance. If Bajaj Finance gets slammed as it did in January, February and March, we won't hesitate to take it back to normal weight. Late April or early May we tripled our position in Bajaj Finance,” he added.

    AU Small Finance Bank

    Saurabh had revealed a few days ago that he had added AU Small Finance Bank to his portfolio of Kings Capital.

    We have started adding AU Small Finance Bank. There is a lot of interest in midcap consumption plays beyond fast-moving consumer goods,” he said.

    He described AU Small Finance Bank a good lender with a high quality franchise, a strong balance sheet, good cost control and good NPA control.

    He also revealed that he is building a position in City Union Bank, another small bank.

    Astral Poly

    A few days ago, Saurabh had sent the clear advice that the realty sector will now pick and that all ancillary stocks like sanitaryware, tiles, pipes, plywood etc would do well.

    He opined that the CPVC pipes space would sparkle and that Astral Poly will surge.

    In the CPVC pipes space, Astral Poly has become the generic name for CPVC pipes especially in western India. We have that in some of our portfolios and we are looking for more such names.

    Divi’s Labs

    Divi’s Labs, the multibagger Pharma stock, is one of Saurabh's old favourites.

    He had recommended that we buy the stock a few months ago, when it was available at throwaway valuations. it has now given very hefty returns.

    "Divi’s Labs has a bright future", Saurabh said.

    Divi’s Labs has been in several of our portfolios, it is less than half the size of Nestle in terms of market cap today. We will stick to our guns there that Divi’s Labs has a bright future".

    Alkyl Amines

    Saurabh is also gung ho about Alkyl Amines, the producer of specialty chemicals.

    "Alkyl Amines is in our smallcap portfolio and will stay there. Our reckoning is Alkyl Amines’ order book will hold up very nicely as the API space continues to boom.

    Eicher Motors

    Eicher Motors, the blue-chip auto stock, is also a must-have for the portfolio.

    "Eicher Motors' core team's focus on growth will bode well," Saurabh opined.

    In auto and auto ancillary we think that Vinod Dasari and team are doing a wonderful job at Royal Enfield at Eicher Motors, growth runway there is also very long. Not just the domestic growth runway but they are having very good success in taking Royal Enfield bikes across the world. We have got Eicher Motors in several of our portfolios as well,” he added.