Home / Business and Economy / PSU Banks Shine: Thakkar's Top Picks Revealed
PSU Banks Shine: Thakkar's Top Picks Revealed
20 Nov
Summary
- Parag Thakkar favors PSU banks like PNB, Canara, and SBI.
- Textile and pharma stocks may rise on potential India-US trade deals.
- Infosys buyback is seen as a positive long-term move for shareholders.
Parag Thakkar maintains a constructive stance on Public Sector Undertaking (PSU) banks, singling out Punjab National Bank (PNB), Canara Bank, and State Bank of India (SBI) as preferred investments. His positive outlook extends to sectors like textiles and pharmaceuticals, which could see growth if a favorable India-US trade deal materializes. Thakkar specifically noted Indo Count and Welspun for their potential in this regard.
Thakkar also highlighted ELGi Equipment, a debt-free company with strong returns, as a potential beneficiary of tariff reductions. He emphasized the company's robust aftermarket business, which contributes significantly to revenue and offers high margins. Despite current challenges in the IT sector, Thakkar views Infosys' planned share buyback positively for long-term shareholders.
He acknowledged that while Infosys currently trades below its buyback price, the reduction in share count is expected to increase intrinsic value over time. Thakkar suggests that the current muted scenario for discretionary spending in IT is likely temporary, lasting perhaps six to nine months. His overall sentiment remains cautiously optimistic across these key sectors.
