Buy Persistent Systems, Relaxo Footwears: Siddharth Sedani

Siddharth Sedani, AVP (advisory) at Sharekhan says the current market fall is a great opportunity for investors to buy good quality stocks for next two years. Investors should avoid companies that have high debt, he added. (Watch)

Stock Talk

Buy Persistent Systems: The company has a good presence in the digital space. It has strong cash flows with decent margins.

Buy Relaxo Footwears: The company is looking to expand its capacity by setting up a new plant. The stock is a good play on consumption theme. The company has a strong balance sheet as well.

Buy Wonderla Holidays: It is in the business of amusement parks. Its margins of around 40-42 per cent are quite strong. In spite of being in a capital intensive industry, its balance sheet is in good shape. The company will be coming up with two more amusement parks by next year.

Dr Lal PathLabs IPO: Valuation of the IPO is little expensive but given its niche segment where there is no other listed entities, the valuations can sustain.

Alkem Laboratories IPO: It is a good bet for both long and short term investors. It is the fifth largest pharma company in India according to sales. They have quite a few abbreviated new drug applications (ANDAs) lined up. It is also planning to expand its exports business.