Pandey says PSU banks look very attractive. "Our top pick is Bank of Baroda, with a target price of 340," he said. He expects the second half of the year (H2) to be better than the first half (H1). "Volatility in performance should ease, and this bank could benefit from potential mergers or consolidations in the PSU space." He also mentioned broader policy changes might support PSU banks. "If the government reviews voting rights and FDI rules, PSU banks may outperform private banks," he added. On Kotak Mahindra Bank, Pandey is positive. "They are guiding for advances growth of 1.5 to 2 times the nominal GDP growth rate. Credit costs are expected to decrease," he said. He expects Kotak to grow around 15% with return on assets near 2.1%. "We like this bank. Concerns over their possible bid for IDBI Bank have settled," he stated. Note that IDBI Bank is not in his coverage. For Tata Steel, Pandey prefers it over JSW Steel. "Realisation dropped by about Rs 3,300 per tonne recently, but EBITDA impact was less at around Rs 1,800 per tonne," he said. He expects margins to improve next quarter with a 12% safeguard duty. "EBITDA per tonne could increase by Rs 2,300. Indian operations will drive growth, helping Tata Steel catch up with JSW on EV/EBITDA multiples," he noted. Regarding a possible merger of power sector NBFCs, Pandey prefers Power Finance Corporation (PFC) over REC. "Both have advance books exceeding Rs 5 lakh crore," he said. He highlighted the huge opportunity in nuclear power financing, estimating it at Rs 20 lakh crore. "A bigger NBFC will be needed to fund these sectors," he explained. While near-term results may not be strong, he said, "The long-term outlook is positive and looks good to us."