Kotak AMC underweight on infrastructure space

Alroy Lobo, Chief Strategist Global Head - Equity Asset mgmt, Kotak AMC is underweight on infrastructure space.

Lobo told CNBC-TV18, "Infrastructure per se we are underweight. The way to play infrastructure is to buy companies which have good assets where they have demonstrated execution capabilities, whether they are closer to cash flow generation or ROE expansion, so that were the kind of companies that we are betting on. They normally come in the area of ports. We are seeing a lot of ports companies which actually fit these criteria."
He further added, "As far as the capital good companies are concerned, at current valuation they look pretty attractive but the trigger for these companies are not in sight and in my opinion it would take another six months before a trigger would emerge. The trigger that the market is waiting for is order inflow and unless that emerges it is very unlikely to see valuation a big trigger for these stocks to perform."