How to deal with euphoria in EMS, railway and defence space? Deven Choksey answers

economictimes.indiatimes.com:

Deven Choksey, MD, DRChoksey FinServ Pvt. Ltd., says “one should not be getting euphoric in EMS space. The same thing applies to defence and railways stocks. We will have to keep a level head on this particular aspect. There is going to be growth. There is going to be opportunity. But at the same time, one should keep an eye on whether they will generate enough margin. Keep an eye on whether they generate growth beyond 20%.”

In the case of PSU stocks, when you see price action, which is close to its free float, and then the government holding is tight, one would expect a lot of volatility.
I probably do not want to disagree but I would like to say that the market has created a situation where in an election year, the government is not likely to divest public sector companies shares and as a result of which, the free float in the market is going to remain comparatively tight. As a result of which and because of the new funds which are coming into the market, people would like to buy something which they missed out till now. As a result, they would create a situation of buying into them.

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The fundamentals of these companies have never been bad. They are probably corrected now as far as I think the balance sheets are concerned and the growth opportunity in the public sector banks always have high potential. Whether they would be in a position to grab that growth which is available in the economy or whether some of the larger peers will find new customers or the borrowers on the