Wait and watch the infra space: Gopinath Natarajan, IIFL PReMIA

Gopinath Natarajan, EVP, IIFL PReMIA, in a chat with ET Now, gives his views on the infrastructure space


Is the time ripe to start cherry-picking when it comes to the infrastructure space? Are there any individual stories that you like?

Infrastructure, real estate, we have been pretty much underweight for a long time. We do not see any reason at this point of time to re-rate the sector, especially in a hurry. We would want to see the overall operating environment change for the better and then possibly look at re-rating or cherry-picking any other stocks in this particular sector. These are all very high working capital intensive sectors, so higher interest rates, one have a large impact on the margin and also especially on the infrastructure side, the competition is pretty intense now over the last 3-4 years, so that also seems to have had an impact negatively on the margins, so with order inflows also being subdued and margins being weak. I am not really sure there are too much of reasons to buy in the sector at this point of time.