L&T and BHEL arte attractive at current levels: Ambareesh Baliga

Ambareesh Baliga, COO, Way2Wealth Brokers Pvt. Ltd. in an interview with ET Now talks about capital goods stocks.

Capital goods, yes, the IIP numbers are showing a dismal trend but the kind of price performance as well in the correction in a BHEL, which has hit a new low today. L&T at 1560. Would you even think of a contra buy right now or just let it be?

No. In fact we have been buying for a while and clearly at these levels, it is a great contra buy. I do not think we should really go by the IIP numbers so much because we need to remember that the last year base effect was quite high.

A couple of months in the last financial year, in fact we have seen growth of 40%-70% in capital goods. This is just not possible to sustain so because of which we are seeing the abysmal numbers this year but one should look at a slightly longer period of time. It should normalise, so at these levels in fact we are finding both L&T and BHEL quite attractive.