What is your view on some of the defence counters that are doing exceedingly well? A case in point is Bharat Dynamics, which is up 7%. Garden Reach is up 5%. A couple of other defence names are in focus as well. Where do you think these defence valuations are and do they seem attractive or do they seem too high compared to valuations six months ago?
Narendra Solanki: We are positive on the defence space and not only for the short to medium-term but even for the long term. The overall demand dynamics in this space, the demand is huge and India’s import dependency is also very huge. So, all these domestic manufacturing companies which are coming up with new technologies and inculcating new manufacturing techniques and offering products to our armed forces and the increased acceptance by the armed forces on the domestic manufacturer goods is steadily rising.
Definitely, the defence space is going to grow significantly. Now coming to the valuations part, definitely valuations were higher. But if you see the overall growth runway of these stocks, the growth continues to remain very high for at least two to three years because the requirement for defence procurement and the defence requirements are very huge for our armed forces and all the three armed forces combined requirements are very huge.
Ordering activity will continue to pick up over the next few years. Whenever you get a chance to buy in terms of market pessimism or whenever there is a decline, it is a good space to be in and to buy into the instalments or something like that, but yes, definitely for long-term the defence space is very good.