Crompton Greaves a good portfolio bet, says Rajen Shah

Crompton Greaves is a good portfolio bet, says Rajen Shah, CIO, Angel Broking.

Shah told CNBC-TV18, “Crompton Greaves has come down to very good levels. So certainly I would look at it but as I earlier said probably because of the market sentiment, the stock may go down further but I think at these levels, Crompton Greaves certainly looks to be a good portfolio bet.”
 
He further added, “Real estate companies are saddled with huge debt. So to reduce the debt, this kind of activity is going to happen over the next 12-24 months but I think my bet in the real estate space would be Godrej Properties. I think it is a different model and I think the company should do very well. Plus it is now getting very aggressive in the redevelopment business in Bombay. So I think Godrej Properties at about Rs 570, we own this stock in our PMS. At Rs 570 levels, it looks a very- in fact two years back this company came out with IPO at Rs 500. So recently they placed 81 lakh shares with FIIs at about Rs 575. So I think it has come below that price. So it looks interesting. The other player, which I would look at in the realty space would be Mahindra Lifespace. So these are the two companies, Mahindra Lifespace is at about 10 kind of P/E multiple at about Rs 300. I think there is not much to lose over there. So these are the two ideas in the real estate space where I would look at.”