Sandip Sabharwal sees strong growth potential in Bharti Airtel, despite market challenges
«So, many of these construction, infrastructure, capital good companies have corrected very significantly from 52-week highs to three-four months back they are more near 52-week lows,» says Sandip Sabharwal, asksandipsabharwal.com.
Lots of numbers yesterday and with the standout one and when I say standout one bad numbers also stand out, the standout one or the standout group for me actually is cement and construction. Everything there is just getting marred because of slowdown in the government action.
Sandip Sabharwal: Yes, exactly. So, it is across the board. You see capital good companies, you see infrastructure companies, across the board there is a slowdown in execution.
Many of the pet projects of the government, like few companies who are doing these Jal Jeevan Mission projects also, they have indicated slowdown in payment and as such they have slowed down the project. So, it is a vicious cycle where the governments do not pay you on time, then these companies are now very cautious because they have taken a hit in previous cycles, then they slow down the projects till their payments come through and that cycle has gone through and that is also reflected in the stock price correction.
Many of these construction, infrastructure, capital good companies have corrected very significantly from 52-week highs to three-four months back they are more near 52-week lows. Many stocks are down 30% to 40% also and the key is that many of them have good order books.
As if execution picks up, which it should next year,
