BEL, HAL, Power Mech, Welspun Corp, M&M shares: Cholamandalam's Dharmesh Kant weighs in

Dharmesh Kant, Head of Equity Research at Cholamandalam Securities, on Tuesday shared his views on select sectors and stocks amid ongoing volatility in domestic equities.

Kant remained constructive on the defence space. "Defence is one segment where things are likely to remain insulated from most external factors. Even input costs are largely stable for these companies, given the nature of their manufacturing. BEL (Bharat Electronics Ltd) and HAL (Hindustan Aeronautics Ltd) look quite attractive to me," he told Business Today.

On metals, he suggested that the sector could continue to show resilience despite market swings. "Metals is one space that, despite the volatility, is likely to trade firm. Any decline in metal stocks should be seen as a buying opportunity," Kant added.

He also pointed to select automobile names such as Mahindra & Mahindra (M&M), citing strong demand visibility. "For M&M, bookings remain strong with a waiting period of five to six months. Earnings growth of around 20 per cent looks achievable. The stock has corrected significantly, and one should consider it," he said.

Kant described the current market as a "cherry-picking environment," advising investors to remain highly selective and cautious in their stock selection.

Among other ideas, he highlighted Power Mech Projects Ltd, backed by strong order inflows and visibility. "The company recently secured an order of around Rs 700 crore from Adani for thermal power plant operations and maintenance. Its total order book stands at over Rs 55,000 crore, including around Rs 15,000 crore from operations and maintenance (O&M). A 20 per cent earnings growth run rate over the next two to three years is quite achievable," Kant said.

He also expressed optimism on Welspun Corp Ltd, citing sectoral tailwinds. "Welspun Corp, which operates in the pipes segment, stands to benefit as the Jal Jeevan Mission regains traction," he added.

Amid heightened market volatility, Kant advised investors to adopt a staggered investment approach rather than deploying capital all at once.