stocks to buy in 2022: Over 60 IPOs came out in 2021; here’s what to

If one is investing in auto stocks, the CV segment has to be the top choice. The second segment would be the two-wheeler and the passenger vehicle segments because electric vehicles have made a steady breakthrough in these segments, says Deven R Choksey, MD, KR Choksey Investment Managers.


Anything which is catching your attention from the IPO market? More than 60 companies went public but attention has been garnered by three or four names – Paytm, Zomato, PolicyBazaar and Nykaa. There are many other companies.

Yes. There are many other potentially good companies and we have kept our eyes on some of the companies which are benefiting from the China plus strategy. I am referring to the companies in the API, CRAMS segment in the chemical segment. A couple of them are in the pharmaceutical segment. These are the ones which are likely to show relatively better performance.

These are companies like Supriya, Ami Organics, Anupam Rasayan, Rossari Biotech and even Laxmi Organics. They are trading a little expensive at this point of time, but these companies have a clear roadmap ahead for their businesses and are not affected by the raw material prices at this point of time and have a clear formula for passing over raw material cost hike to their customers as their customers are typically large formulation companies which are taking their API goods to formulation processes.

I like some of these companies which remain fundamentally very strong propositions but price wise, they are a little expensive. It is quite possible that one may have to look at these companies during a correction. In case of a price correction along with time correction, one could invest in these companies for the long term. So, opportunity is around but one should buy selectively.

The one stock that everyone is going to be looking out for especially given its outperformance in the recent few months is Tech Mahindra. What do you make of their new acquisition, a conscious diversification into the digital insurance space?
Tech Mahindra has found the success formula for acquiring companies and making them commercially more viable and successful. As for this particular acquisition, the first and foremost fact is that the InsurTech business which they have acquired contains a talent pool of around 700 plus people and this could possibly lead to a sizable amount of accretion on the top bet even though currently it may only add up around 1% or so.

The topline of the company could possibly go further up largely because globally majority of the businesses services are being disrupted and the tech is basically taking over in all these services. InsurTech is one such area where probably the demand is to bring down the cost to the ultimate insurer and at the same time make business profitable to the insurance companies.

All in all, put together, tech is a front and the insurance business is the backend. If one gets the formula right, then business could succeed faster and that is…