Why Sanjiv Bhasin is bullish on these 2 beaten-down stocks

economictimes.indiatimes.com:

Sanjiv Bhasin, Director, IIFL Securities, says “the headwind and the recent uneasiness in IEX is more because this is an FII-owned stock. They owned it at Rs 300 and at Rs 125 they are getting the jitters. So the investor will make 50% return in IEX from here.

GMR Infra is a no-brainer. That one-quarter whitewash was all about reducing their corporate debt and now they have nil corporate debt. So on a value play given the demographics of India, GMR can be a huge outperformer.”I see some beaten down names or stocks that investors usually do not want to bet on. IEX, which is going through a lot of regulatory headwinds and GMR Infrastructure are in your recommended list. Why is that?IEX is a no-brainer at this price.

We have all gone through what the coupling-decoupling will be. Their day ahead market has 85% market share and they are now back on margin front. 85% EBITDA in a company which has got the maximum market share on an exchange and competition and everything is already priced in.

One cannot get it at this price, at a multiple where the earnings will be very sweet in the next few quarters. The headwind and the recent uneasiness is more because this is an FII-owned stock. They owned it at Rs 300 and at Rs 125 they are getting the jitters.

So the investor will make 50% return in IEX from here; 180 is coming and coupling or decoupling, their business model is very strong. Once you are through with June power rates – and we have had no power cuts – repricing will come in, volumes will grow and margins will be just fine from here. So IEX is a dark find.