Expect 25% upside in L&T, says Rajen Shah

Rajen Shah, CIO of Angel Broking told CNBC-TV18, “It is time to load up infrastructure and capital goods stocks. We have been positive on the space for now quite a while. This year, we are expecting L&T to report about Rs 90-95 kind of earnings for the FY14, that’s our projection at Angel and at about 16-17 times I certainly feel it is a stock to be owned.”

He further added, “There is still 25 percent upside and the kind of money flow we are seeing, I am sure that this stock should be touching its high maybe in the next 12 months. So, we are very positive on companies like L&T.”
”Even Crompton Greaves looks like to give a 20-25 percent move. Voltas’ numbers were very disappointing. But if you see, this year they should end up with Rs 7 kind of earnings, so it could go to about Rs 105. So, we are positive on capital goods and infra space and we would recommend strongly loading up these stocks,” Shah added.