In the last month of October we have seen 13 percent year on

IDFC Securities bullish on roads

buy canada goose jacket cheap Are green shoots visible in the canada goose outlet nyc capital goods infrastructure space was the question asked to Shirish Rane, head of research, IDFC Securities in an interview to CNBC TV18 from the sidelines of IDFC Annual Investors Conference. buy canada goose jacket cheap

According to him green shoots are already visible in the roads and ports sector. The volumes in both the container segment and bulk have grown substantially, which in turn is driving the volume growth for ports.

uk canada goose outlet He feels with the government restructuring around 11 premium old projects and giving environment clearances canada goose outlet new york city to the projects that were stuck has given a boost to the road sector. uk canada goose outlet

And now with NHAI in a much better position to award projects, they expect round 4200 km of roads to be awarded in the next six months. Out of that about 1,700 kilometres will be on Build (BOT) and another about 2,500 kilometres will be on EPC, says Rane.

The house is upbeat on Adani Ports and Gujarat Pipavav Port from ports sector and from roads they are very bullish on IRB Infrastructure canada goose outlet store uk and Ashoka Buildcon. These two companies don have a balance sheet issues they can capitalise on growth going forward and they have biding capacity to win new projects, says Rane.

They canada goose black friday sale are also bullish on Jaiprakash Associates with the outlook that the company is likely to pare significant debt in a canada goose outlet online 12 months time frame.

canada goose coats on sale GMR Infra and Larsen and Toubro are also good bets on back of strong airport business and defence sector revival respectively, he said. canada goose coats on sale

However, the house is a little bearish on BHEL primarily because the current order flow is only sufficient for them to maintain their current profitability. The growth in the earnings will not be there for the next couple of years and which is why we are bearish on the stock right now.

Canada Goose Outlet Below is the transcript of Shirish Rane interview with CNBC TV18’s Menaka Doshi and Senthil Chengalvarayan Canada Goose Outlet

Menaka: Exactly in which specific areas of infrastructure and capital goods are you seeing maybe the first signs of a return to growth if at all?

A: We have been very bullish on ports and road sector for a while. We think canada goose outlet in usa there are very clear green shoots visible in roads and ports already. Ports, the volume growth has already started picking up. In the last month of October we have seen 13 percent year on year (Y o Y) canada goose outlet shop in containers which is after nearly about an year or more than a year we have not see this kind of a container growth. In bulk also because of the coal imports we are seeing pretty strong growth in bulk imports. So both these things are driving volume growth in the port segment.

Canada Goose Jackets In the road side government seems to have resolved all its pending issues like premium restructuring old projects which developers were not willing to go ahead because of delays in clearances, land acquisitions so on and so forth. So both these things have been completed, premium restructuring has been completed for 11 projects, the environment clearance related projects have been surrendered by the developers to the NHAI. Canada Goose Jackets

So that pipeline has been by and large cleared. So all these things have now led to fresh activity in roads. We are expecting about 4,200 kilometres of roads to be awarded over the next 6 months. Out of that about 1,700 kilometres will be on Build (BOT) and another about 2,500 kilometres will be on EPC.

So we are very clear that these two segments will do well from here because of the strong activity in these two segments.

Canada Goose Coats On Sale Senthil: How about payment delays, because we canada goose outlet toronto factory were speaking to Mr Gulabchand yesterday and he said the biggest bane for them is payment delays from government. Is that likely to affect new orders or is that only something that older payments have to be worried about? Canada Goose Coats On Sale

Canada Goose Online A: The problem is mainly in the older orders where there have been claims submitted against NHAI by the road developers and mainly it is the EPC players who had claims on NHAI for various clearances not being given on time and official canada goose outlet they have claimed compensation and this has been canada goose outlet parka going on now for nearly 4 5 years and the amounts have become very large for some of these guys. That is mainly a problem for older projects. Canada Goose Online

canada goose uk black friday For newer projects NHAI is in much better shape to award them because they have land in hand and canada goose outlet online uk most of the clearances are already in place. canada goose uk black friday

canada goose coats Menaka: Which stocks do you think stand to benefit the most from this uptick that you speak of in for the both port and freight traffic as well as road sector coming back? canada goose coats

canada goose clearance A: We are very bullish on Adani Ports and Special Economic Zone (SEZ) and Gujarat Pipavav Port. In roads we are very bullish on IRB Infrastructure and Ashoka Buildcon. These two companies don canada goose outlet have a balance sheet issues they can capitalise when the growth going forward and they have biding capacity to win new projects. canada goose clearance

canada goose factory sale Their old projects too are pretty much on stream they are generating canada goose outlet store cash flows and they are doing a good job of sort of paying back debt as well. So, overall their balance sheet is much stronger and they have biding capability for getting newer projects. canada goose factory sale

Menaka: Amongst sectors that everybody is hopeful will return to strength is Power. Now some of the stocks I understand or recommendations that IDFC has made have to do with Jaiprakash canada goose outlet sale Associates, GMR Infrastructure and KSK Energy these are all outperforming stocks according to IDFC at least according to the data I have. Can you talk us through why you continue to be so bullish for instances on JP assets sales are becoming so sticky?

canada goose A: We are very bullish on JP canada goose outlet uk Associates because we believe they will be able to reduce their debt substantially over the next 12 months. Already a beginning has been made by selling the power assets. canada goose

canadian goose jacket Further they are also looking to sell one of their thermal assets to another private company so once all of this is done the debt should come down by about 30 odd percent and if required they are willing to sell their one or two goose outlet canada cements plants as well if required to bring down the debt to sustainable level of about Rs 450 billion or so. We think this is achievable over the next 12 months and which is why we are bullish on JP Associates. canadian goose jacket

Canada Goose online Menaka: You are bullish on GMR Infrastructure and KSK Energy all in the power sector can you talk us through your investment case for power before we move on to some other sectors? Canada Goose online

A: Our investment case in power has been mainly that there are been two major issues in power one is tariff issues and other is fuel issue. In case of tariff issues the whole issue is in some sort of legal circles it is going around currently it is in the Appellate Tribunal for Electricity (Aptel) one of the tariff revisions is pending in APTEL. Whereas for fuel issues the coal mine allocation and the linkage given to people who don win the coal mines this two things should help a lot in assuaging the coal shortage problems.

canada goose black friday sale As far as gas is concerned the proposed gas pooling arrangement should also help reduce the gas shortage with the gas power producers and that should be positive over the next six months for gas plants. So, combination of these two makes us bullish on the power sector where we think there is not as many issues in Power Trading Agreement (PTAs) or there are not as many issues in fuel so case to case where we think there is very little issue in fuel according to us and that is why we are bullish on canada goose outlet canada goose outlet uk sale KSK. canada goose black friday sale

GMR is not only a power company, GMR canada goose outlet jackets has also airports canada goose factory outlet routes and we are very bullish on airports because we think they are unique assets, there is a good annuity model and as traffic continues to grow with the economic growth they will be able to get very good cash flows and there is also a real estate in both the airports Delhi and Hyderabad which will act has big kicker for the valuations once the monetisation of the land starts.

cheap canada goose uk Menaka: I want canada goose outlet reviews to talk now about defence and railways. These are canada goose outlet canada two new sectors that will benefit from the hiking of the FDI limit. How should investors approach these sectors or approach investment ideas in these sectors canada goose jacket outlet because again in defence many of the private sector companies run their defence arms quite literally in subsidiaries right. So you either invest in the mother company or you don or you have a PSU option. So what should you do in defence and equally in railways? cheap canada goose uk

A: It is a difficult case to make out which companies you should play in defence and railways because still it is not very clear in what form the companies will benefit because in defence especially where the orders will be give out to companies where defence will be one of the portions of their entire business.