Pick IVRCL over Punj, get out of M&M on every rally: Angel

From the infrastructure space, an investor should prefer stocks like IVRCL with a one-and-a-half to two years perspective than Punj Lloyd, suggested Phani Sekhar, fund manager at Angel Broking.

Talking to CNBC-TV18, Sekhar indicated that the balance sheet and growth picture for Jain Irrigation, as far as its earnings go, is not very conducive. "The stock is in a process of adjusting its valuations lower," he added.

Moreover, he suggested to the investors to get out of M&M on every rally. He further advised to get into L&T instead for a two-year perspective.

Here is the edited transcript of his interview to CNBC-TV18. Also watch the accompanying video.

Q: What would your call be on Punj Lloyd? In general, what are we seeing in the infra space in terms of volatility?

A: There are better stocks in the infrastructure sector to invest in after the recent correction. Punj Lloyd is not even one of the top 10 to be looked at. Punj Lloyd happens to be a global player and it had taken setbacks in case of its overall subsidiary.

Over the last three years, with the slowdown in infra structure, we are seeing a significant slowdown in Punj Lloyd