Once MF top picks, now value buys

By Varinder Bansal, CNBC-TV18

Which stocks now represent value, post the correction and mild recovery? CNBC-TV18 takes some top picks from a list of mutual funds and private equity players, from the time that they picked up their stakes and evaluates.

There have been interesting price movements in some of the stocks, but more importantly the basis for these movements are far more interesting.

The first stock on our list is Praj Industries, it's trading around Rs 165 and hence fallen nearly 40% from its peak at Rs 265 per share. But interestingly, Tata Sons bought nearly 7.34% stake at Rs 252 per share, so one pays around 35% less than what Tatas paid at the time of acquisition of their stake.

Jai Corp is another stock where the price is trading around Rs 815 and fallen around 44% from its peak of around Rs 1,450. This was the biggest private equity dealing stock in the secondary market and the company raised around USD 500 billion at the average price of Rs 1,064. So one pays, if bought right now, around 25% less than what institutions paid at the time of acquiring these shares.

HEG, another stock, on the radar - the stock price is around Rs 360 and fallen nearly 40% from its peak of around Rs 609. The promoters have recently issued warrants to them at a price of Rs 452 per share. So you are actually buying the stock around 20% low than warrants issue price.

GMR Infrastructure is another stock, which is trading around Rs 170 levels and it has fallen nearly 35% from the peak of Rs 261 per share. The company has recently raised USD 1 billion at a QIP price of around Rs 240 per share. So one will buy the stock at 30% to the discount of what QIPs paid to GMR Infra.

A very interesting stock is Havells India. The stock is trading around Rs 530 levels and has fallen nearly 30% from its peak of around Rs 750. In a very interesting deal Warburg Pincus picked up nearly 11.2% stake in this company for Rs 625 per share and also issued warrants at a price of Rs 690 per share. So you are actually buying the stock at 50% discount to what Warburg paid and also around 20% discount to the preferential allotment. So there are many stocks with very interesting prices and regions in the market.