Buy Bharat Forge on dips; be careful in specialty chemicals for next 2-3 years: Sandip Sabharwal

economictimes.indiatimes.com:

Sandip Sabharwal, asksandipsabharwal.com, says “in the specialty chemicals space, many stocks are down 30-40% from the top but they are still up 200-500% from the bottoms of 2020. And their margins are going to collapse. This is one segment where people should be very careful for the next two, three years.”Have you been a buyer in the recent market decline along the Q1 earning season? Have you added any positions or bought afresh?My view was that we will still see some corrections.

I am just waiting for the correction to play out. In terms of results, among the slightly larger companies which reported interesting results and outlook was Bharat Forge. Their various diversification plays seem to be making headway on the defence side.

This is one stock people should keep on their radar to buy on declines.We have seen a lot of rush when it comes to the multiplex. The footfall seems to have recovered with the kind of film releases that we have witnessed. Hotel bookings have recovered as well; prices have spiked up significantly. Within this entire space, where do you see strong opportunities – Indian hotels, Mahindra Holidays, PVR INOX?PVR INOX continues to be a reasonable bet at these prices after a 15-20% rally because people had just written off the stock and there is a certain rollback in the sector and things are much better than they ever were.

So, that is a disconnect. There is a set of people in the market who still believe that and will not buy these stocks because they believe OTT will take over and no one will go to watch movies. Those people would not buy but otherwise, it is a reasonable bet.