Bullish on construction stocks: Ashish Kapur, Invest Shoppe India

Do you think construction is a major play right now and going forward into the next few months?

Ashish Kapur: I really think so. Amongst the sectors, this is one sector where of course the future is very bright given the kind of infrastructure weakness, which we have in our country, so obviously the kind of projects, which we are going to see are really going to go up in scale, size and in numbers also and many of these companies have very good business models. They have been around for many years and most importantly this is one sector, which has not done very well over the last one year, so relatively the valuation is attractive compared to some of the consumption linked stories.

So yes, on a comparative basis, construction and realty are strong bets going forward and within this, we like stocks like IVRCL Infra where the order book is very strong, mostly backed by government or government agencies and where the strength is really in a niche area like irrigation where we can clearly see demand gaining momentum going forward.