Ahluwalia Contracts top pick, prefer L&T: Dhananjay Sinha

Dhananjay Sinha, Head-Instl Research of Emkay Global Financial Services told CNBC-TV18, "The vision that we have maintained throughout last couple of years is that we were not very positive on the private sector capex cycle and notwithstanding the change of guard that happened in Larsen and Toubro (L&T), we have maintained that view. So we are sort of underweight on capital goods in general and as a result of that we are very selective. We believe that if one has to play this space, one can consider wherever government is focusing a lot in terms of initiating capex through infrastructure space and that is largely reflected in our overweight position as far as roads are concerned.""Many of our top picks are in the region of roads, so we had J Kumar Infraprojects and Ahluwalia Contracts India. IRB Infrastructure Developers is something that we had liked. As of now we think our top picks are Ahluwalia Contracts India. We have liked L&T primarily because it is fairly diversified. It has got reasonable orders across the world and so I think that is the only company that we like which has a mix of multiple sectors. They have got engineering and procurement and construction (EPC) contracts in large size. So I think from a portfolio standpoint, L&T has been something that we have been considering," he said."We like Adani Ports and Special Economic Zone, against that we have a sell on Gujarat Pipavav Port. In Adani Ports increase in capacity will increase market share in the region that they are in. So we are structurally inclined positive towards Adani Ports."