After Zomato, Gland Pharma, what could be the next turnaround story? Rahul Shah answers

economictimes.indiatimes.com:

Rahul Shah, VP-Equity Advisory, MOFSL, says which will be the next turnaround story, we will come to know once the stock has done well. But the market is just taking a breather right now. Still there could be a lot of value in a lot of names in the banking space.

The PSU space definitely has taken a breather post numbers. So, still for the next year, year-and-a-half, there could be a rally in the PSU banks.Earlier this week it was Zomato, Gland Pharma today, which is the next big turnaround story?The Zomato stock had done quite well in the last couple of months and if we see last quarter's and this quarter numbers, there was a good turnaround. Similarly, in terms of percentage gainers from last quarter’s numbers and this quarter’s, Gland has almost doubled.

If you look at it, Rs 850 or 860 was the low post last quarter's numbers which was a very weak quarter and there was a complete selloff in the markets. Of late, the stock has been doing quite well. As for which will be the next turnaround story, we will come to know that once the stock has done well.

But the market is just taking a breather right now. Still there could be a lot of value in a lot of names in the banking space. The PSU space definitely has taken a breather post numbers.

So, still for the next year, year-and-a-half, there could be a rally in the PSU banks. If we look at it vis-à-vis the longer-term valuation, 10-year average, most of the PSU banks stay at 0.8 times price to book. Now, most of them are trading 1, 1.1 varying from bank to bank.

So, the numbers were good. Margin expansion, loan credit growth, everything looks all right. My sense is PSU banks should continue to do well and especially those in the second rung space should do well.The PSU