JK Cement looks good from long term perspective, says Shashank Khade, Executive VP & Head - Portfolio Management Services (PMS), Kotak Securities.
Khade told CNBC-TV18, "In the midcap space of course I have been looking at a lot of names in the small and midcap side especially on the capex beneficiary side where the ownership in these stocks remains quite low. So in fact we like a stock called JK Cement on the cement pack where the valuations are closer to USD 50 per tonne on EV per tonne basis. In fact it's a 7.5 million tonne capacity company and looks interesting given the fact that its plants are located in two regions in India in North and South. So in fact this is one company. There are a number of names on the infrastructure side which actually look very interesting on a valuation perspective."
He further added, "I think these sorts of names clearly are to be invested in and would take one to two years to actually give you a large absolute return. The market seems to be lopsided on the consumption theme. My sense is that consumption theme will be on till the time the defensive need remains. Once the risk on trade starts off, people would tend to look at the infrastructure names and the capex oriented plays. There are number of companies where leverage is not an issue, cash flows are fine but the valuations are at serious discounts. So JK Cement was one such example, there are many others which look quite interesting."
