Outlook for the market – Bleak till January 2015:
Sandip Sabharwal expects the markets to correct sharply in January 2015 on the back of poor Q3FY15 results.
Career Point – clean and focused management & on a comeback trail:
Career Point went into problems because of the change in format of the examinations three years back. However, it is now on a comeback trial. Management is pretty focused, it is a clean management and that is one company which we see as a turnaround company. Some other education companies have done much better and their market cap has gone up substantially, so that is a one stock which we are looking at as a good play going forward.
Sintex Industries – turnaround stock:
Sintex Industries is stock which will do well and it is something I have been talking about for the last three to four months. Sintex Industries is on a turnaround path and their most of the FCCBs conversion will get through over the next couple of months. Once that happens we will see an upward moment in the stock price.
Va Tech Wabag – will do well in the medium to long-term
Good asset-light business model and a key recommendation in the beginning of the year. Company is well positioned to take advantage of opportunities though valuations in the near term are a bit of concern.
Strategically, it has been moving in the right direction with acquisitions though it is difficult to give a buy call based on valuations.
PSU Banks – Avoid
Though the Prime Minister and the Finance Minister have called a meeting of PSU Bank Chairman on 2nd January 2015 to hammer out the problems, one is not sure what will emerge out of the meeting. Also, the banking space has been an out-performer so far and has not corrected at all. So, one has to be sceptical about the banking space in general and PSU Banks in specific.