Avoid Just Dial, Britannia, Eicher Motors: TS Harihar

TS Harihar, chief executive and founder of HRBV Client Solutions says the recent fall in stock markets was largely technical and not because of domestic fundamentals. Indian markets have been falling in "sympathy" with the other emerging markets, he said.

Stock talk

Mr Harihar said investors should avoid stocks with rich valuations and buy pharma stocks that can prove useful in times of uncertainty.

Just Dial: The stock soared to about Rs 2,000, but it's now trading around Rs 700. However, investors should not jump to buy the stock despite the sharp correction.

Britannia: The stock traded around Rs 400 three years back and today it is trading at 8 times that valuation. The reason is that there are a limited set of quality stocks and the money keeps flowing into the same stock inflating the prices. But, that probably has to at some point in time give away.

Eicher Motors: The stock traded around Rs 220 six years back, today it is 100 times the price so it is the classic global problem of asset inflation. Whether the stock price is sustainable is the big question.