Buy Pipavav from a medium to long term perspective: Avinash Gorakshekar

Avinash Gorakshekar, VP Research, Edelweiss Financial Advisors in an interview with ET Now talks about shipbuilding space.

What do you do with the shipbuilding space?

Clearly ABG as well as Bharati Shipyard and Pipavav, there are selective stocks where if one takes a reasonably medium to long term call, this business is definitely having good amount of visibility but more importantly, I would prefer a Pipavav because clearly from the marine and from the defence space, that is where the big upside is going to come in.

In fact if you look at the other pockets especially the offshore oil space, there has been news that the order wins have not been that significant and the market is more or less flattish and if you look at the broad shipping market, typically it is also going nowhere. So Pipavav would be the best choice.

Clearly these stocks move more importantly on order win flows and less on the kind of earnings growth because typically if you see the business for Bharati as well as ABG, lot of money is actually stuck up in form of subsidies which are yet to be released by the government. So to that extent, Pipavav would be a better choice.