TCS, Reliance and HCL Tech looking attractive now: Hemang Jani

economictimes.indiatimes.com:

Hemang Jani, Independent Market Expert, says “from an investment and valuation perspective, that is surely looking quite attractive because you have additional triggers in terms of the unlocking of the value of this Jio Financials, which is still not reflected in the current price. So it is looking quite interesting at this point of time.”
This morning, Nuvama has put out a note saying that Polycab could be a play on exports now. Right now, they just have about 12% of their revenues from exports. When they went for IPO, they had an annual profit of almost Rs 500 crore. Right now, they have a quarterly profit of Rs 500 crore. What is the potential for unlocking exports?
The wire and cable segment has displayed very strong growth over the last two, three years.

Given the kind of surge that we are seeing in the residential, commercial and real estate activity and the kind of renovations that people are undertaking, there is going to be significant growth for sure. You do not replace your cables and wires at home every year and so why should these companies get such a crazy kind of valuation?
But there are the upgrades through various means, renovations, and the new sales, which are happening, there is going to be a significant uptick, particularly for the better upgraded, higher capacity wires and cables.

So I think both for Polytech, as well as RR Kabel, the growth trajectory is good, yes valuations we can debate but wherever there are certain niche companies operating in a particular space where the earnings visibility is 20-25%, people do not mind paying high valuation. So one should have a positive bias for these names.

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