Optimism in industries misplaced: Prateek Agarwal

In a chat with ET Now, Prateek Agarwal, Business Head & CIO, ASK Investment Manager, shares his view on industrial/engineering companies. Excerpts:

ET Now: Are you a buyer in some of industrial/engineering companies?

Prateek Agarwal: We are doing it on a bottom-up basis rather than top-down basis. So, we have a fair exposure but we are not very enthused on the theme. Some of the companies which benefit from the overall macro are already pricing in a lot of the upside.

Many more of the engineering capital goods companies are tending to be European or American, while lot of the capex that are making people positive would tend to be with Japanese money. Hence lot of the others in that space would tend to go to Japanese companies.

I believe that some bit of optimism there is misplaced but there are companies which benefit from changing rules. We are positive on a few companies which make huge number of equipment and as overall economic activity revives and industrialisation moves up, they benefit micro spaces but not overall on the large scale.