Like KEC International, INOX Leisure: Pankaj Pandey

Pankaj Pandey of ICICIdirect told CNBC-TV18, "There are 3-4 segments where the government Capex is working and KEC International is a big beneficiary of the government capex especially in the transmission and distribution (T&D) side. They have got orders of about Rs 12,300 crore plus L1 orders of another Rs 3,300 crore. So order book going forward is expected to be in the range of Rs 11,000-12,000 odd crore. Now, what this company has managed to do is keep their interest cost quite stable at below 3 percent of their topline and which is why we are expecting that with better capital management, this company is going to deliver far better topline growth of about 16 percent and the bottomline growth would be even better at 20 odd percent. This stock was part of our yearly pick. We still like this stock with a target price of Rs 295."

"Another one which we like is INOX Leisure. This stock is trading at a substantial discount compared to the market leader PVR. It is not a distant number too which is why expect that this stock should do well. One of the reasons which we believe why this stock was relatively not performing compared to PVR was the slower ad revenue growth of single digit."

"So in this particular quarter, we expect ad revenue growth of about 12.7 odd percent and box office revenues also should go about 12 percent in this particular quarter. But over the next two years we expect the overall growth to be 15 odd percent both for box office revenues plus the ad revenues. That should lead to catch up in the valuation for this stock which is why we like this stock with a target price of Rs 325," he said.