HDIL safe infra stock; bullish on OMCs: Sajiv Dhawan, JV Capital

Sajiv Dhawan, MD, JV Capital Services talks to ET Now about Infra stocks & OMCs.

What do you make out of an HDIL or an Indiabulls Real Estate, these guys who control the Bombay real estate?

Sajiv Dhawan: Again we have had buy reports on HDIL from 240 and the stock has gone to 200 and I agree with you that the stock is undervalued, it is a very savvy management. They are very well networked in their field and the stock is grossly undervalued considering what their particular initial business is.

Indiabulls Real Estate is one of these stocks, which is always a one there for the speculators and there is always some news that buy this stock for quick gains but it seems to have disappointed a lot right from 200 plus all the way down to may be 140-150, the stock gets those buy calls. I am not convinced, there is too much speculative interest on that particular stock and on any 5-10% of uptick, we do see a lot of profit taking, so HDIL for us is a better and safer stock.

What do you not like? Is there any particular stock or a group of stocks, which can be kind of clean from the covered new space made for new T-shirts, new stocks? Anything that we can dispose of?

Sajiv Dhawan: In power, there is too much hype but that sector is probably a bit overpriced and really not going to runaway, so you could probably look to get out of those stocks. If you got an oil and gas, if you got an ONGC, I prefer to now to switch to a Cairn or one of the oil marketing companies, BPCL, IOC or Hindustan Petrol and although bullish on these stocks from a medium-term to longer term perspective, you could look to short probably some of the real estate stocks if they bounce back.

The reason is not the hype to it, it just when the markets do correct, it is a sector that's going to get pounded again because of market conviction and sentiment levels are still pretty low.