Focus on refractors, compressor cos; like specialty chemicals space: Vallum Capital

With the Sensex trading around 30000 mark and Nifty above 9200, the big question retail investors are faced with is where to find value at these levels.

Madhusudan Sarda, Executive Director, Vallum Capital Advisors advises looking at allied product makers in the steel sector like the refractor companies, compressor companies.

Giving his rationale behind this, he says with the whole price to earning theme that is currently playing out in the market, it is better to look at those stocks wherein a sustainable value will be created in the portfolios. Therefore instead of focusing on the pure commodity plays one should look at sub-set of commodities – be it infrastructure or steel, metals etc.

The house is upbeat on refractories like Vesuvius and compressor companies like Elgi Equipment, Kirloskar Pneumatics.

The house is of the view is that there is lot of value getting created in capital goods sector, which may not be immediate but over a period of time and Ingersoll Rand is a well-positioned in that space, says Sarda.

Specialty Chemicals space is another interesting investing opportunity believes Sarda.

For the full interview, watch video