Buy Areva T&D on dips: KR Choksey Securities

In a chat with ET Now, Deven Choksey, MD, KR Choksey Securities, shares his views on the outlook of Areva T&D and Suzlon.

What do you make of the numbers from Areva T&D and Suzlon?

More than numbers one should be looking at whether you are going to get a better business in the second half of the financial year from this segment. In case of Areva T&D, you do get that particular promise. In case of Suzlon, I am not too sure on the financial side, but on the business side, I am equally sure over there as well.

For Areva T&D, you are going to see a huge amount of orders getting disbursed to most of these players within this space. You are going to see transformer and transmission space getting a lot of orders in this particular period of second half as we gather from the rest of the industry captains. Companies like ABB or even smaller transformer companies are all talking about reasonably good amount of orders with better margins going forward. So, we do see good prospects but whether it would not justify the price of Areva T&D at the current level. But if you are holding this company for more than four quarters, then you are going to see performance every quarter one after another. So, one should be looking at this space now with a larger amount of interest for making money on every dips, one can buy this counter.