'Long-term outlook of JP Associates, Unitech positive'

In a chat with ET Now, Satish Betadpur, CFA, Global Research Director, Independent International Investment Research PLC, talks about the outlook of JP Associates and Unitech.

You seem to be quite bullish on JP Associates and Unitech. Are you convinced that the momentum is here to stay?

Not really. These are long-term price targets and are not necessarily stocks that we like for the near term. We hope that they would achieve their price targets sooner than later. There is fundamental value in both these stocks. So we believe that the value will be unlocked soon. JP Associates has a lot of triggers going for it. They've just completed the IPO of JP Infra, which is the housing segment and their cement expansion story is also looking positive. It is not the best of times to own cement stocks as we are going into monsoon, but after the monsoon, it will be a wonderful time to own cement stocks. So it's better to be early on cement stocks, especially if you are a large buyer of these stocks.

Unitech is again fundamentally a strong company in a good sector of the market with products that are priced appropriately with reasonable margin. So, in a market that is more normal, especially going into the end of the year, these stocks will rally.