Buy BHEL, ABB on dips: Irani

Mehraboon Irani, Centrum Broking is of the opinion that dips in BHEL, ABB should be used as a buying opportunity.

Irani told CNBC-TV18, "Selectively, I think dips in BHEL, ABB should be used as a buying opportunity is what I personally feel. I am aware of the fact that most of us who are looking at these stocks are possibly a little bit negative on these stocks. But looking at the valuations, I think I would look at the cash flow of the companies, and if they are comfortable then they don’t have to tap the market in any particular way. I think it is virtually impossible for any company to raise money. Order book is something that I am not too impressed by. Order book might be there but orders can get deferred or cancelled, looking at the way the overall situation is."

He further added, "The two stocks, which possibly stand out in this space are Larsen & Toubro and Punj Lloyd with the latter possibly holding an edge over the former. So I think sharp dips in the market and with these stocks also coming down; I would possibly look at them from an investment angle. There is value in these two stocks at least in this space. BHEL is possibly something I would ignore for the time being because I personally feel that in terms of valuations I still prefer Punj Lloyd and Larsen & Toubro to BHEL."

"As far as ABB and other companies go, I think those are the stocks that would possibly take their own time to recover in a market in which people are possibly going to look at frontline stocks. Even from that parameter, I think Punj and L&T have a distinct advantage over the others in the pack."

Source: Moneycontrol