Where within cement do you see opportunities? Would you go with pan-India players like UltraTech or the regional smaller players?
In cement, there is a big gap in terms of valuations. In the north, the pricing is becoming a bit tepid related to what is happening in the south, Dalmia Bharat is a decent enough stock to look at. Another stock is HeidelbergCement which is more of a retail play. As construction activity improves going forward, people would go for rebuilding their houses and so HeidelbergCement could be an interesting stock. The third stock that one can look at is Prism Johnson, which has some other businesses in addition to cement. That stock looks quite interesting in terms of valuation.
Since we are talking about the capital goods industry coming back, construction activity improving and real estate doing well, cement is a good play. It has good pricing power/ From that perspective, most of these stocks would do pretty well going forward.
Where do you see promise within IT?
In IT, you have to be a bit stock specific. Within the largecap space, a stock like Infosys can easily go up to Rs 1,400. They are clearly gaining market share. There was a lot about media reports about more deal wins, more contract values happening and an explosion in terms of margins relative to where they were earlier. Infosys looks like a classic stock in terms of being a steady stock which needs to be in the portfolio of any investor.
Other than that, a lot of midcap stocks had already run up a lot, most of these stocks are up close to 100% over the last one year in terms of returns. Some of these stocks which have not done that great could be picked up. Cyient is one. Some improvement has happened in terms of commentary from Boeing and that could be a positive for Cyient.
So I would be looking at these two stocks. But overall, I do not think it is the right time to buy the entire IT space because these stocks have already run up relative to the kind of growth they are expected to show over the next couple of quarters.