Market Expert Nischal Maheshwari Sees Short-Term Opportunity in PSU Banks; Bullish on Biocon, HDFC Bank for Long Term

Market expert Nischal Maheshwari outlined his investment strategy across banking, pharmaceuticals, and other key sectors during a recent interaction with ET NOW, highlighting specific opportunities in both short-term and long-term horizons.

Banking Sector: Tactical Approach Based on Timeline

Maheshwari presented a nuanced view on banking stocks, differentiating his strategy based on investment timeframes. He sees HDFC Bank as attractively valued following recent market weakness and volatility.

"The merger blues are behind it now, and valuation-wise it is attractive at the moment," Maheshwari said, referring to HDFC Bank's integration challenges. He believes the stock offers a good trading opportunity at current levels.

However, his sector preference varies by investment horizon:

"If you are looking in the short term, it will be PSU banks. For a medium-term view, I would go with private banks," he explained.

Biocon: QIP as Strategic Balance Sheet Move

Maheshwari defended Biocon's recent qualified institutional placement (QIP) despite the company's substantial debt burden. The pharmaceutical company's debt stood at over ₹5,000 crores at the end of the September quarter.

"This QIP is largely because the stake they bought out from one of the holders of BBL needs to be paid. This money will go towards that," Maheshwari explained. He expressed confidence in the company's ability to manage its leverage, stating that Biocon's cash flows are strong enough to handle debt levels over time.

"Over the next two to three years, given the cash flows, the debt should be taken care of," he added.

Pharmaceutical Sector Outlook

Within the pharmaceutical space, Maheshwari maintains Biocon as a preferred pick, disclosing his personal investment in the stock. He believes the company is entering a favorable phase after years of heavy capital investment.

"Biocon, with consolidation and launches likely in the next one to two years, is in a very good sweet spot," he said. "Over the last two or three years, they have made a lot of investments, and that should fructify in the next two years."

Maheshwari also highlighted his preference for the contract development and manufacturing organisation (CDMO) segment within pharma, describing it as a fast-growing space.

Broader Market Themes

The expert remains optimistic about the financialisation of savings theme, including asset managers, viewing it as offering long-term growth opportunities. While he doesn't actively track Anand Rathi specifically, he maintains a positive outlook on the broader space.

"The space is very interesting and has a very long runway. One should be invested in that space as part of a portfolio," Maheshwari noted.

In the metals sector, he sees continued potential as the trade hasn't fully played out yet, pointing to a global trend of investors preferring hard assets. For the power sector, his preferences are clearly defined:

"EPC players are placed much better than anybody else," he said, adding that any easing in supply constraints could benefit them significantly.

Source: https://www.etnownews.com/markets/exclusive-market-expert-nischal-maheshwari-sees-short-term-opportunity-in-psu-banks-bullish-on-biocon-hdfc-bank-metats-for-long-term-article-153440493