Buy BHEL, advises Deven Choksey

Deven Choksey, MD of KR Choksey Securities told CNBC-TV18, "The numbers will follow in capital goods space because what we are experiencing right now while interacting with the management is that there are more order enquires which have already started and given the kind of execution in the infrastructure space, which is expected to happen in the power and distribution space, I think that the activity will increase from here onwards."

"Higher order inflow doesn’t meant that it will get reflected into the results of these companies particularly capital goods companies in next one or two quarters but the environment change would bring more amount of confidence and analyst would start factoring that particular aspect in the future results of the company particularly in Bharat Heavy Electricals (BHEL) and Larsen and Toubro (L&T)," he said. "If one looks at from the perspective of valuation probably one will find that BHEL is available in a single digit price earning ratio and very close to price to book value ratio, which is also very favourable. So, from that point of view this company looks interesting, downside is limited and that is where we see justified action from the market players to buy and create long position for a little longer period of time. To gain 25-30 percent of headroom from this company, one needs to buy now and not later."