Yes for both of your Qs but not all infra stocks .

Can Infra companies make consistent profits? The answer is welcome from all boarders.

Can they ever reach their previous highs?

yeah u r right, infrastructure standard between india & place of my resident is huge..maybe investment of even 1trillion dollar wont be sufficient..
Infrastructure is not only confined to construction company like NCC or say IVRCL..Auto, Cement, steel, tyre, lubricant, building material..all these & many more would be benefitted..

Hi asadsaby, The market looks bullish for the months coming. In india Infra is going to see a tremendous growth. The one that we seeing now in India is not in par with international standards in most of the areas. For India to become the developed country, Infra is the main sector government would restructutre.

Absolutely, i have been always saying that be at 80:20 in favor large cap stocks like RIL, TCS, etc..only 20-25% in high beta stocks like Infra and real estate...now that things are started to improve for the good of infra sector..we can slightly increase our weightage to 70:30.

Pharma stocks like Lupin, Cipla, Sun pharma are evergreen stocks and will give consistent returns irrespective of market trends..

Regards,

fully agreed..my gut feel is totally in sync with urs..better one advice to Venkat, please dont put all ur weight behind infra..
Alwayd Keep cash ready, if market get bullish go long after high bets risky stock..
&
if things get bearish & volatile, invest in defensive sector FMCG, Pharma..

Thanks for the insight Nick. Really appreciate it.

In fact you are in profit in Lanco. so you can hold as i had said..but 72 on IVRCL may take some time coming but don`t average IVRCL. Wait for a dip in NCC to buy and buy the stock phase wise and not in one go as these stocks tend to be extremely volatile. i am sensing some correction will happen in the markets over next month and use the correction to accumulate..but the key word is Govt. Stability and continuing Reforms...if these two doesn`t happen.. well, there will be a huge sell off in the markets...

Regards,

I have Lanco@13.75, IVRCL@72.5 in Infra space Nick. I am following you for a while. Do you suggest this is the right price to enter into NCC.

Good to know that you have vested interest in Infra space and with out investing in Lanco we may not realize the full potential of the sector...even i have 7K shares at 16.5...but i am sure i ll get my money as well as hefty profit over a period of 12-18 months.....what i would say is good that you have made it just ride it for another year or two to realize the true potential of the stock..because as you know Lanco is a volatile stock but on back of some Power sector reforms and monetary easing Lanco is a great bet going forward..but as i said it needs to play out and patience will hold the key....

Regards,

Hi Nick, Just for your comments on Lanco I added another 5k@14.90. My existed avg for this stock is Rs.13.4. Now it is 13.75

One should look at lanco infratech really seriously...its at a price where most of negatives are priced in and being a huge beta stock ( Trades 2-3 crore shares every day ) this is a stock where the action happens very fast and being a popular name and a trading favorite i am sure its really looks as an interesting bet at this stage..


Regards,

NCC executive are expecting 15% growth in topline; which can in way give bottomline growth roughly at 20-25%..
so staying invested till mid November can be rewarding..

Yes, it needs to play out and will not happen immediately..so i am although confident that NCC will see higher levels in medium term. On short term stock can correct and there is space for that as markets are pretty overheated at the moment. Slight negatives from Europe and US will lead to correction in our markets to the tune of 2-3% and that would be the pretty good risk reward point to go long and invest for medium term..

Regards,

we can observe from intraday chart of NCC & IVRCL that both are moving in absolute synchronisation..May be percentage wise NCC is down more by couple %..
I am still bullish..even a small infra specific policy announcement by Govt (which is expected shortly) will give wings to the stock..