Moneycontrol
May 09, 2017 05:19 PM IST | Source: CNBC-TV18

Cap goods space looks interesting, to give good return over long-term, say experts

Some of the cap goods companies have the potential to deliver 20-25 percent returns over medium to long-term, said Dilip Bhat of Prabhudas Lilladher.

Today was largely a flat day for the market as a whole but there was plenty of action in individual stocks like Godrej Consumers, ABB, etc.

Ashwani Gujral ashwanigujral.com says the range for the Nifty is getting narrow. So sooner or later breakout is imminent but till then it will remain sideways.

Mitessh Thakkar mitesshthakkar.com says broadly the trade remains stock specific.

Sector specific, the second phase for Infra and capital goods is on, says Gujral and so advice to add some of these names like CG Power, GE Power, ABB to the portfolio.

Most of the market experts were impressed with the ABB numbers and the trajectory outlined by the management. Dilip Bhat of Prabhudas Lilladher says the direction in which India is moving, companies like ABB, Siemens would naturally tend to benefit. They have the potential to deliver 20-25 percent returns over medium to long-term.

Thakkar agrees with Gujral, that capital good space looks interesting and says it also looks positive on charts. The space would continue to outperform and so, one can look there for opportunities.

Independent market expert Ambareesh Baliga says order flows for most of these companies look decent and most are coming from PUSs. So, the orderbook looks steady for the next six to eight quarters and therefore one needs to be in that space. One can look at names like ABB, BHEL, he adds.

Commenting on the Godrej Consumer numbers and the sector as a whole, Dilip Bhat Prabhudas Lilladher says from the space he is more upbeat on D-Mart than Godrej from a long-term perspective even though it is expensive at current juncture.

From the auto space, Bhat likes Bajaj Auto, which is poised to grow and has the potential to give handsome gains.

Baliga says unless 7-8 percent correction in the PSU bank space, he would not enter it and post the correction would look at names like SBI, BoB, Oriental Bank of Commerce and PNB.

In the same interview, S P Tulsian sptulsian.com also shared his views on stocks and sectors.

For the entire discussion, watch video

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