Infrastructure stocks will look up post elections: Harendra Kumar

In a chat with ET Now, Harendra Kumar, Managing Director-Institutional Equities, Elara Capital, shares his views on Infrastructure stocks.

ET Now: What do you like from the basket of asset owners because every company is now trying to reduce their debt, JP has reduced their debt by selling their cement plant, NCC is doing a right issue, HCC is trying to sell some of the beauty projects do you like anything from that space?

Harendra Kumar: Indeed the infrastructure space looks quite interesting. They are quite optimistic on the order book off take going ahead post elections especially on the interlinking of reverse value so it is too early to build any estimates on that front. The stocks have bottomed out, any incremental trigger to the stocks is a positive.

For HCC clearly there is the amount of back log that the government has to pay them back itself means that there are more positives than negatives at this given point of time similarly for NCC as well. So yes there are pockets of value that are doing well, in fact for the other companies like Reliance Infra for which clearly there are not many takers at this given point of time, has ownership of Reliance Power whether assets are coming on stream plus the Mumbai metro, plus the cement plant so there are lot of positives that are building up for Reliance Infra at this given point of time so the value creation has happened over the last four years but there are no takers. All these stocks will tend to get rerated post the formation on new government.