Defense stocks offer long -term visibility, but the valuations are still stretched: Sandip Sabharwal

In recent weeks, Tata Motors has been in the spotlight after a large cyber attack had an influence on his Jaguar Land Rover (JLR) activities. The development issued concern about the short -term prospects, but market expert Sandip Sabharwal believes that the situation may not be as alarming as it initially seemed.

“No, not really. Because what happened was that this impact happened some time ago, it was somehow later in the markets and now the company comes out with an explanation that things are now stabilizing,” Sabharwal said in an interview with ET now.

He added that the company’s underperformance compared to his colleagues in the automotive sector, combined with GST-eating cuts on vehicles in India and improving the prospects for JLR via the US-UK Trade Pact, can offer support.

“So if things stabilize and the fact that it has so much achievement than the rest of the car Pack and the GST cuts on cars in India certainly have a positive effect on the domestic activities and the JLR business should also look up with the US, the UK-trade player. So I should not be able to sell the stocks,” on a price. “

In the field of technology, the recent H-1B visa debate and the potential to stimulate GCC opportunities have also fueled the attention of investors. Sabharwal, however, remained careful. “I don’t really think so because the whole news current is so dynamic that it will take some time to settle and we don’t really know what the next steps will be. All segments where exposure is more on the American market or one of the companies that have exposed themselves to the American market.

On the wider market, in particular Defense shares, Sabharwal emphasized their strong visibility in the long term, but warned of increased valuations. “Selective opportunities keep coming because there are periods of corrections. So the most credible game among the government ownership in the defense space remains Bharat Electronics and that is a company that will continue to do well,” he said. Hij voegde eraan toe: “Dan zijn er zoveel andere bedrijven zoals zelfs Hal en de scheepswerfbedrijven die een mix zijn van de algehele vraag naar schepen die in India worden gebouwd, evenals defensieorderstromen. Dus hier zijn de waarderingen nog steeds een beetje uitgerekt. Dus nogmaals, we moeten zoeken naar kansen waar enkele correcties zijn om de totale markten te komen en dan is het goed om te zijn voor de meeste van deze bedrijven. Dat is iets dat in de meerderheid There is no other industries.