Prefer Sundaram Fasteners, Gabriel India: Rajesh Kothari

Rajesh Kothari, MD, AlfAccurate Advisors told CNBC-TV18, “We prefer to play through Sundram Fasteners and Gabriel rather than playing through the commercial vehicle players.”

He further added, “One sector, which we are watching very closely is the construction space. In the Budget also, there is more allocation on the road segment, so the government is also focusing on that.”

“In case of ITD Cementation or KNR kind of companies, the balance sheets are not an issue, they are not CDR kind of cases. Even if suppose some company is CDR but the management may not be an issue, the bandwidth is strong, your order book is strong, the execution quality is very strong, then one can have a look at these companies,” Kothari said.

He further said, “We are closely monitoring Ashoka Buildcon. The traffic growth is increasing. As the traffic growth increases on one hand and the interest rate comes down on the other hand you will see the overall value - the sum of parts value will also increase significantly. So, the BOT value will all of a sudden become increasingly important play rather than just the EPC play.”