Positive on lot of engineering PSU companies: Dhiraj Sachdev, HSBC AM India

In a chat with ET Now, Dhiraj Sachdev, Fund Manager-Equity, HSBC AM India, shares his views on PSUs.

ET Now: Just a word on the way PSUs have behaved in the one month prior to the election verdict and post that. Some of the stocks are going up as if there have been no buyers in the past five years and suddenly people are making a clamour and the order books are there. But execution has always remained a question mark for these companies. Do you think the market is perceiving that, execution will now improve for these companies and therefore the lapping up? How bullish are you on this pack at large?

Dhiraj Sachdev: You have mentioned about the PSUs and we should not categorise PSU in one basket. Many of them have been pretty efficiently run be it in the civil infrastructure space or on the oil and refining capital side of the space. So many of them have really worked and have compounded their earnings in the last four or five years. So it will be wrong to presume all of them in one basket. I sense that they are still pretty cheap. When you look at their business potential and opportunity over a longer period of time and if we still believe that there is lot of infrastructure thrust that this government is expected to provide and investment cycle is expected revive on time, then lot many companies can sustain higher growth momentum. So yes, selectively, we are fairly positive on lot of engineering PSU companies as such.