Pick small-cap bets to cash on the infra fall: Sharekhan

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Pick small-cap bets to cash on the infra fall: Sharekhan

Infrastructure stocks have been thrashed down at the street lately, however, Sneha Poddar, infrastructure analyst at Sharekhan says it is a long-term investor’s pick despite the pain. "Things will not turnaround immediately but long-term investors can find value at these levels," says Poddar.

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Excerpts from Midcap Radar on CNBC-TV18 Watch the full show » ALSO READ See what other experts are saying about markets See what FIIs are saying about the markets See what Udayan Mukherjee is saying about the markets

Infrastructure stocks have been thrashed down at the street lately, however, Sneha Poddar, infrastructure analyst at Sharekhan says it is a long-term investor's pick despite the pain. "Things will not turnaround immediately but long-term investors can find value at these levels," says Poddar.

She picks small-cap bets like Pratibha Industries and Unity Infra where order inflows have been good and execution has been on schedule. "The burden on the balance sheet of the small-cap infra bets is comparatively better compared to the larger players," she adds.

Below is an edited transcript of Sneha Poddar's interview to CNBC-TV18. Also watch the accompanying video.

Q: At Sharekhan are you looking for value in any of the beaten down infra stocks?

A: We expect that the pain would continue for at least the next one-two quarters. Probably investors can start accumulating stocks at these levels. Things would not turnaround immediately; pain would be there but if you are long-term investor, you can find value at these levels.

Q: Which are the stocks that you are advising?

A: We like the small-cap companies like Pratibha Industries  and Unity Infra wherein the order inflow has been good and execution has been on schedule. For larger companies with the delay in the clearances and land acquisition issues, the execution has taken a hit, however for the companies that handle smaller projects have kept the execution on track.

Although interest burden has been there across these sectors, the execution seen in these companies are better-off and they have not got investment into the asset development projects, the burden on the balance sheet is comparatively better compared to the larger players. Hence, we prefer Pratibha and Unity Infra in the small-cap space.