2 stocks Chakri Lokapriya is bullish on for near term

economictimes.indiatimes.com:

"Polycab numbers came out to be really strong. I think that as a space, if you look at the numbers revenue of 40%, bottom line up 80%, and very strong order momentum," says Chakri Lokapriya, CIO & MD, TCG AMC.Just wanted your take in the meantime regarding the entire real estate pack and by real estate, I also mean the ancillaries, building materials, consumer durables, wires and cable companies etc. What is the best theme, do you think, out of this that you would want to take a bet on?Polycab numbers came out to be really strong.

I think that as a space, if you look at the numbers revenue of 40%, bottom line up 80%, and very strong order momentum. So, companies in that space including Finolex looking very strong. In spite of the stock has had a really good run-up that is Polycab.

I think the fundamentals are still very intact. The business momentum is exceedingly strong and so, I think Finolex Industries, Polycab.Within the insurance and the ancillary space itself, HDFC Life had seen quite a bit of run-up. SBI Life was on the back foot. And then there were these reports about AMC stocks also coming back to favour, given the fact that the entire TR ratio was going to be relooked by SEBI?Indeed.

But that has a space I would still stay away from because it is again which is becoming one of a declining margin business. And therefore, operating leverages which used to work for the AMC industry is not working because of the controls that SEBI is placing in terms of pricing. And therefore, a larger asset base does not necessarily translate into a higher profit margin as used to be the case.