Prefer Power Grid, L&T: Ajay Bodke

Bodke told CNBC-TV18, "I think I would be slightly cautious in getting infra names. I would still rather stick to some of the names like Power Grid Corporation and Larsen and Toubro. These are the two names on the infra side that we are quite positive on, especially Power Grid with the kind of results that it has posted, strong capitalization that it’s shown in
the fourth quarter and the guidance that they have given in terms of the next five years, they are looking at Rs 1 lakh crore of total capital expenditure evenly divided over the next five years. So I think these are the names in these uncertain times we are pushing quite aggressively."

He further added, "Even if you look at the kind of earnings growth that is expected on the Power Grid front, we are expecting a very strong 22% earnings growth for the current financial year followed by around 17% in FY13-14 and also on the valuation fronts I think the company is trading at just around 11 times FY14 earnings, around 13 times FY13 earnings with a moderately strong sort of return on equity of around 13.5-14% which we are projecting for the current and the next financial year. So I think Power Grid is one company on the infra side that we will push along with Larsen and Toubro."