Positive on Vinati Organics and Polycab India stocks: AlfAccurate’s Rajesh Kothari

Rajesh Kothari, Managing Director of AlfAccurate Advisors, on Monday said as a theme in past 3-4 years he has switched from defensive to cyclical.

“For the current year and probably for the next 2-3 years cyclical as a sector, which has underperformed in last 3-4 years I think that category should do well going forward over the next 2-3 years.”

“GDP growth is going to be much more broad-based and that should lead to the better recovery and stronger corporate earnings growth in many cyclical names.”

On portfolio calls, Kothari said, “In this specialty chemical space where we have observed that there are few companies which we believe are going to become kind of giant companies over a period of 5-7 years and the Vinati Organics - which we are holding for us and our PMS clients is one of such company and we continue to remain positive on this name.”

“Polycab India is consumer durable segment, they have crossed Rs 500 crore revenue in the fast moving electrical goods (FMEG), it took only four years. From Rs 500 crore to Rs 1,500 crore one of the largest player in this space it took probably about 6.5 years and we think Polycab may able to do it little bit faster because of very strong product portfolio and very strong cost competitiveness because of the backward integration.”

Disclosure from Rajesh Kothari: The companies which I have mentioned we might be holding it for our PMS clients and in a personal capacity.

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