What should investors do with defense stocks? Sunil Subramaniam answers

economictimes.indiatimes.com:

«The Modi 1.0 and the 2.0 had such a strong emphasis around the infra space and so I think there was a lot of confidence that the government through a mix of disinvestment, divestment, professionalising these companies, getting in private sector honchos to head it, and would improve their performance and so that, I would say, in a way, helped these stocks,» says Sunil Subramaniam, Market Expert.

You just heard it from our research analyst, the kind of valuations some of these fancy defence, railway names are sitting at, the kind of growth trajectory and more importantly of late the kind of stock fall some of these stocks have seen, both on a monthly as well as on a weekly basis. Having said that, I mean, if you were to just elongate the chart for another one or two years, perhaps, a 30% fall is negligible, given the kind of returns some of these stocks have made. So, what is the right way of looking at the recent fall that some of these names have seen?
Sunil Subramaniam: I think for an existing investor who got in early into this space, it is good to book profits. And the reason I say that is that A) a huge valuation gap between the same private sector related companies and the public sector. So, there was a catch-up rally happening because historically, they have always been at a discount to the private sector.

Now, why did that discount change? Why is that perception of a discount went away was basically because of the government. The Modi 1.0 and the 2.0 had such a strong emphasis around the infra space and so