Deven Choksey of KR Choksey Securities told CNBC-TV18, "Both railway and defence are important space and certainly one will have to look very closely at the individual stocks. I do agree to a greater extent that many of the railway stocks have run up ahead of time and valuations are on higher side but the companies are likely to get benefited with higher amount of order inflow coming in from this particular segment."
"The actual impact, if I see it properly would happen with a lag of two-three quarters. Therefore, come second half of financial year 2015-16 we would see many of the railway stocks would start producing the performance against the expectations that we have at this point. Certainly the market is buying at least a year-year-and-a-half in advance into these companies but this visibility is important and this where market is giving thumbs-up to many of the railway stocks including some of the MNC companies which hold large potential and they are yet to find larger orders coming in. But as and when the sector starts opening up these companies should be getting the lion share out of those orders which would come in. Therefore, I would remain positive on railway."
"Similarly is defence space and many companies which are into it, we talked to management and realised that they are likely to get the business but it would take some time maybe two-three quarters down the line. Once again you would see some amount of traction. Generally in defence it is understood that the companies will have to go into some kind of trail period before the actual supply starts when the products are new or the components are new," he said.
"Therefore, to a greater extent I would believe that there would be inquiries to begin with, orders to begin with but the business would happen with a lag of around two-three quarters but remain positive on them. One will keep looking at individual ideas whenever the market gives opportunity to add them into portfolio into both these spaces, they remain exciting."
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