Simplex Ind, Ahluwalia Contracts preferred picks: Dolat Cap

Amit Khurana, Co- Head Equities & Head of Research at Dolat Capital Market told CNBC-TV18, "I think infra is one of the rare segments which has shown evidence of the uptick in the order being given out by National Highways Authority of India (NHAI) and the Ministries. We are finding that getting corroborated in corporate commentary. If there was one sector which I would probably say has the potential to really show a very material change in terms of sentiment, that could be the construction and the infrastructure space over the next couple of quarters. Therefore we like this place." "A proxy for the economy recovery and in general, we are seeing evidence of government money being spent not just at the central level but even at the state level. We are finding evidence, that the state governments are beginning to spend money and therefore we like Simplex Infrastructures and Ahluwalia Contracts India. In general we have been fairly positive about the sector as a whole. It is just that these two are our preferred picks," he said. "In terms of price targets, we believe that there is a medium term protection for these stocks to generate mid-20 kind of return and outperform the markets in general."