Dtocks To watch Mastek and IPCA Laboratories Ltd.

Harendra Kumar of Centrum Broking is positive on Mastek and IPCA Laboratories Ltd.
Here is how he views the stocks on board:

On Mastek:
The company has met 15 out of its 17 guidances. It has a robust order book of around Rs 450 crore and its Return On Equity (ROEs) are very compelling. The stock is available at around 4.5-times forward earnings. There is a bit of comfort in its ROE valuation outlook. It’s a small midcap pick. It should deliver good returns over the period.

On IPCA Laboratories:
IPCA is trading at around 6.5-times forward earnings and historically it has traded around 10-times. It is going into new geographies where margins are higher and it is setting up a new plant there. Return On Equity (ROEs) are going to move up, if it even moves back to its historical PE multiple, things are going to look good.