“In real estate there are several moving parts. One, when you look at sales value, it has jumped 50% for top six-seven odd players. Similarly, the launches have also jumped and in fact, the pipeline for FY23 is also healthy for most of these companies,” says Pankaj Pandey, Head of Research, ICICIdirect.com
Any interesting buy ideas that you have picked out for your investors?
Capital goods and auto sectors are largely looking decent. In auto, even though we are expecting about 20-25% of growth in CV as a segment, we still do not see FY19 levels or sales levels being crossed in FY24. So that is one segment which is looking good and especially
are looking good there.
In the capital goods space, especially bearings, both SKF and
are looking good. Last quarter numbers were very good, and they were able to pass on the commodity cost.
is another company which has been looking good. They have given a very good volume growth in the last quarter and our expectation is that volume growth is going to be very healthy, So that is another stock which we have a liking for. Then there are companies like
and within defence, Bharat Electronics looks good to us.
A lot of the headlines coming in from the US are about how their mortgage market and real estate market is under threat. For us in India, it is one of the best comebacks that we have seen of the property market. Are you still convinced about the real estate story and what would be your top picks?
In real estate there are several moving parts. One, when you look at sales value, it has jumped 50% for top six-seven odd players. Similarly, the launches have also jumped and in fact, the pipeline for FY23 is also healthy for most of these companies.
Cost inflation is another factor which is impacting in the range of 10-13 odd percent. Largely, companies are stating that they will absorb half of this cost and the balance will be passed to the customers. As a result, we are seeing muted price performance given the fact that this is one of the best performing sectors.
Our sense is that one can still look at some of the companies like Brigade or
. These are the companies which are looking attractive to us given the fact that there is not much stress on the balance sheet side and then launches or the launch pipeline for these companies is also good but till the time there is inflationary pressure, we would not expect a broad-based performance from this sector.