Equinomics Research & Advisory Founder and MD G Chokkalingam asked buyers to apply to the Hindustan Aeronautics Limited initial public offering (IPO) which opened on Friday, for medium to long term gains.

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His view on the medium-to-long term benefits of the stock came in the backdrop of a lackluster first half for HAL and muted revenue growth over the last two years.

The primary market is buzzing with issues open such as HAL, Bandhan Bank and other issues that are closed, such as Bharat Dynamics and Cochin Shipyard.

Bandhan Bank was doing very well in terms of growth, current accout savings account (CASA) and containing its nonperforming assets (NPA). However, he said the valuations looked at bit expensive and advised buyers with a higher risk appetite to participate in the IPO.

Chokkalingam said he prefered to have a position in Cochin Shipyard compared to Bharat Dynamics as due to the expectation of high demand for naval ships, bolstering Cochin Shipyard's prospects.

Demand for military equipment is expected to remain robust, with India becoming rising in to the ranks of the top five defence spenders in 2018, with a defence budget of $52.5 billion.

First Published:Mar 16, 2018 8:00 AM IST