Tata Power, Graphite India & HDFC Bank: What AK Prabhakar of IDBI Capital says on these 3 stocks

AK Prabhakar, Head of Capital, IDBI Capital, on Thursday picked Tata Power Company Ltd as one of his top fundamental stock picks. "The company expects its revenue and EBITDA to be doubled by FY27. I think it will be more than double. If a company can double in 4 years, then its 20 per cent CAGR (Compounded annual growth rate). If it is doing the same in 3 years, then it is 25 per cent CAGR," Prabhakar told Business Today TV.

Investors with a 3 to 4-year perspective can buy Tata Power at current levels and every dip in the share price could be considered as an oppurtunity, the market veteran underscored. The company's unit in Tamil Nadu will add glory to it, he added. Tata Power shares were last seen trading 2.20 per cent lower at Rs 267.30.

The other stock which the market expert suggested was Graphite India Ltd. "In electric arc furnace (EAF), Graphite play a major role. Investors with a 3 to 5-year view can look at this company," he stated. Graphite India's stock was up 0.47 per cent at Rs 505.20.

When asked to pick a stock from the Nifty50 space, the market expert chose HDFC Bank Ltd. "They (the private lender) are very aggressive in their expansion plans. When you expand, your branches are not going to be profitable in the first two years. From a three-year perspective, the lender's stock is likely to give a good return in the Nifty50 pack," Prabhakar said. HDFC Bank shares slipped 0.66 per cent to trade at Rs 1,548.95.

On the current market situation, he said that holding companies usually tend to outperform in a bull market.

Meanwhile, Indian equity benchmarks took a breather today after a sharp upward run. The domestic indices traded slightly lower, dragged by banks and financials. Mid- and small-cap shares were, however, positive as Nifty Midcap 100 climbed 0.08 per cent and small-cap gained 0.33 per cent. India VIX, fear index, rose 2.28% to 13-level.

Investors now await GDP (gross domestic product) data for the second quarter, scheduled to be released post-market hours today.

Seven out of the 15 sector gauges -- compiled by the NSE -- were trading in the red. Sub-indexes Nifty Bank and Nifty Financial Services were underperforming the NSE platform by falling as much as 0.41 per cent and 0.28 per cent, respectively. However, Nifty Pharma and Nifty Consumer Durables rose 0.79 per cent and 0.34 per cent, respectively.

The overall market breadth was negative as 1,762 shares were declining while 1,630 were advancing on BSE.

Foreign institutional investors (FIIs) bought Indian shares worth Rs 71.91 crore on a net basis during the previous session and domestic institutional investors (DIIs) purchased shares worth Rs 2,360.81 crore. FIIs remained net seller for 16th consecutive session.

(Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.)

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