BEL available with decent valuation of about 15-16 times: Hemang Jani

In a chat with ET Now, Hemang Jani, Senior VP, Sharekhan, says there are three themes that we are looking at -railways, defence and roads. Excerpts:

ET Now: The market is very quiet, nothing happening today, you are talking about four or five big themes that could actually turn around. What is your big theme for 2016 and how are you recommending investors play that theme?

Hemang Jani: There are three themes that we are looking at -railways, defence and roads, so within that space we like something called Bharat Electronics.

ET Now: Why BEL, why not anything else?

Hemang Jani: In the entire defence theme, people are looking out for companies where there will be a meaningful top line growth and that is coming through only from the government side, the private sector is not really spending, so we think that given the thrust of the government on the indigenisation that is something big a trigger. We already have seen that the management is saying that there is going to be a Rs 10,000 crore inflow in terms of orders for BEL and it is a debt-free company with a very decent ROE of 20-22 per cent. So we are seeing strong visibility there and available with a decent valuation of about 15-16 times, so from that perspective we think that this makes a lot of sense.