Sanjiv Bhasin on why Biocon is a Dark Horse play and Mankind a ‘Hold’

Sanjiv Bhasin, Director, IIFL Securities, says “we continue to be very bullish on Lupin and Sun Pharma. But our dark horse play is Biocon. Biocon is just on the verge of a fresh breakout technically also, we have been bullish from Rs 240, 250. We think Biocon is a stock which can double. So, Rs 500 is our target on Biocon. In Mankind, it is a hold.”

What did you make of Wednesday’s two listings? There was the Aadhar Housing listing and it was rather tempered in terms of overall listing. There were some interesting block deals and the other listing which saw quite a bit of fervour.
Sanjiv Bhasin: It will be difficult to comment on the new listings, because we were one of the investment bankers, merchant bankers. There is a compliance issue there. But I would like to say that the three-and-a-half times price to book on Aadhar and HDFC, the mortgage company available at less than two times, everyone is chasing momentum, but you are missing the real value curve.

I still think if you are looking for the next two years, then HDFC Bank is a no-brainer. However, if you are chasing momentum, then there are a slew of new offerings there, but this is the time to be a little discerning and add HDFC Bank to your portfolio. It will glow like anything by this Diwali.

We are also anticipating M&M's quarterly numbers today. What do you think that the company will deliver?
Sanjiv Bhasin: Well, their SUV market has been superb and we have seen how their new launches have taken by storm, their EV launches are doing extremely well. Numbers will be very strong, but it is all in the price. Most of the auto plays are fully priced to perfection and we have to realise that this momentum on the sales front cannot continue.

So, yes, diversification of assets will be key, but my top favourite there continues to be Maruti on the four-wheeler and Ashok Leyland on the CV side. M&M numbers may be in line with the expectation, however, like I said, everything is in the price.

What do you make of Mankind Pharma and whether the stock can be bought around these 2190 levels or not?
Sanjiv Bhasin: In the last one year, this has been a revelation purely on the back of some of the launches which have been well accepted and their domestic business has actually been way ahead of most of the peers. I still think there is margin on the upside given that it is enlarging its share. But the stock has already run up a lot. I would advise a SIP, but look at the whole outperformance which has been there in the pharma sector, Sun, Cipla, Lupin.

We continue to be very bullish on Lupin, Sun. But our dark horse play is Biocon. Biocon is just on the verge of a fresh breakout technically also, we have been bullish from 240, 250. We think Biocon is a stock which can double. So, 500 is our target on Biocon. In Mankind, it is a hold.