Sintex, Cera Sanitaryware, HSIL to gain from Modi's smart city initiative: Deepak Shenoy

In a chat with ET Now, Deepak Shenoy, Founder, Capital Mind, shares his view on stocks that are likely to get a push from PM Modi’s smart city initiative.

ET Now: After PM Modi’s smart city push, I am somehow getting a sense that there is a lot of pent up demand and action in some of the home improvement, fitting, sanitary ware companies. What do you like from that pocket?

Deepak Shenoy: That space is really exciting. It is probably going to be…

They are expensive stories, but they are very good in terms of likely long-term appreciation. Sintex’s business is more than just home stuff, but the company’s tanks are going to be used in a very large way.

There are companies like Cera, Kajaria and HSIL. These are stories that are probably going to pan out in a big way. Here, one has to look at the market leaders — the ones I mentioned. Small companies are unlikely to benefit quite as much. This space itself has so many little players that you do not know which ones will move. It could be as diverse as Havells. It is because you need electrical equipment to work as well. It is not just about home improvement, but basic infrastructure in the home space. Almost all of these players will benefit from a big city initiative.

The question is how successful the initiative will be and how fast it can turn things around. Some of these players are expensive, but Sintex is not. We have been invested in the stock. It is a fairly cheap player. That has been affected by FCCB conversions. Therefore the prices have come down by 20 per cent from its highs. That is one of the most exciting players. HSIL, Cera and Kajaria also from this space would be our prime choices.