Bullish on IVRCL Infra, HDIL, Mphasis: Angel Stock Broking

Lalit Thakkar, Angel Stock Broking is bullish on IVRCL Infrastructure, Housing Development and Infrastructure (HDIL), Alembic, Greenply Industries, Mphasis and Electrosteel Castings.

Below is a verbatim transcript of his exclusive interview with CNBC-TV18's Udayan Mukherjee and Mitali Mukherjee. Also watch the accompanying video. Q: You are bullish on construction. That space has got battered over the last couple of weeks. Why would you be buying things like Nagarjuna and IVRCL? A: Market has always reacted in extreme for the infrastructure companies. In 2008, even though these companies price competitive business had low return on equity (RoE), on account of growth, these companies were trading at a price to book value of around two-and-a-half to three times. Now what has happened because the RoE has come down, these companies are trading at half the book value. The growth rate of the industry is going to be around 15-16%. When an industry is growing by 15-16% per annum, any entrepreneur can get a 15% RoE also. So, what we feel that if the RoEs are right now 10%, it