Good long-term wealth creation potential in infrastructure: Sunil Subramaniam
Sunil Subramaniam, MD and CEO, Sundaram Mutual Fund, sees good wealth creation potential in the infrastructure sector from a long-term perspective, especially after the Union Budget. He is positive on the sector despite near-term growth being priced in, and suggests that stock picking is going to be key.
“A lot of the expectation is in the price and I think that the actual earnings will surprise on the upside when the order books flow, because these are cyclical industries, and you can’t use a typical last year grew x so this will be x+10, typically, they go through a multiplier kind of thing,” he said.
He stressed that picking the right company will be important. One can look at companies where order books are going to come in earlier, and which have the execution capability, tie-ups with bank funding and promoter experience, he added.