L&T, BHEL best picks in capital goods: Ambareesh Baliga

ET Now spoke to Ambareesh Baliga, VP, Karvy Stock Broking Ltd., for his views on the capital goods sector.

What are you forecasting now for the capital goods sector?

You have to look at people who can actually execute and among the larger boys, it is basically the Larsen & Toubro and BHEL, which has the capability and which has shown that they can execute those orders and with the sort of order book, which is full for the next 2.5-3 years, you really cannot have any better pick.

ET Now: Would you go in for that typical Jyoti Structures, Kalpataru Power Transmission kind of stocks or would you look at something else right now?

Ambareesh Baliga: Once you have bought these top 2-3 stocks, you need to have some of the mid-caps in the portfolio and one of those mid-caps, which I have recommended on your channel sometime back was Diamond Infra.

It has run quite well, it has already moved up to levels of 205-208 and even now after a smaller correction, it can actually move to levels of around 240-250, possibly it could take another 4-5 months.