L&T looking good in the capital goods space: Mehraboon Irani

In an exclusive interview with ET Now, Mehraboon Irani, Sr VP - PMS, FCH - Centrum Wealth Managers Ltd, talks about capital goods space. Excerpts:

Your thoughts on the capital goods space, especially with one of the large players, the likes of L&T being disqualified by a PSU, large company like NTPC. Fair enough, there are talks about re-bidding, but what’s your call on L&T and the capital goods sector as such as a whole?

L&T as a stock we had exited more than a year ago and then the stock had just done nothing and over the last 1.5-2 months, we have turned positive on this stock because I personally feel in terms of valuation, as far as this entire space goes, there are not many stocks to select.

L&T, we have started liking all over again after the last quarter results, after the management con call. What stands out as a fact that there is too much clarity as far as order inflow goes, as far as the order book goes, as far as execution goes, which cannot be stated in the same breath for other capital goods companies. Also, in the capital goods space, there have been names like ABB and Siemens in terms of sheer performance. So different issues of the stocks never came down for the reasons but in terms of performance, the numbers were very disappointing, So the only company, which we are looking at in the capital goods space as of now, is L&T.