Prefer IRB Infra, Reliance Infra and L&T: Agarwal

Rajesh Agarwal, Head of Research, Eastern Financiers is of the view that prefer IRB Infra, Reliance Infra and L&T.

Agarwal told CNBC-TV18, “There has been a lot of optimism after Manmohan Singh took over finance ministry’s additional charge. Believing that he is one of the best economist and a best Finance Minister in the past. There has been a lot of optimism in the market that okay, with this trios Mr Rangarajan, Mr Montek Singh Ahluwalia and Mr Singh on the helm of affairs, things are going to do well in the coming quarters and I also do believe in this.” He further added, “So I think we are going to see some happenings in the economic front and with chances of interest rates going down in the near future and inflation coming in control, I think lot can happen. With me, orders coming in infrastructure, the main problem with the infrastructure stock was the high interest cost and once that is controlled, I think things are going to change. There are a lot of stocks, which are highly undervalued and has been whipped out of shape in the last two-three quarters or so. The best stock in this list I would prefer would be IRB Infrastructure or Reliance Infrastructure for a longer-term horizon, even Larsen & Toubro (L&T) would be a very good pick at this point of time also although it has already gained around 30% in the last four-five months but still I would prefer going with the L&T.” Disclosure: None of the stocks which I have discussed is in my personal portfolio but the same advise has been given to our clients.