Rajesh Agarwal, Head of Research of Eastern Financiers Limited recommended selling MMTC. He feels the stock can go down further.
Agarwal told CNBC-TV18, "I have always maintained that MMTC is beyond anybody’s imagination the kind of valuation it gets. It is real difficult to digest the kind of valuation. Even after losing almost 65 percent from its 52-week high, it is quoting at a marketcap of around Rs 34,000 crore. For a company, which earns only Rs 100 crore per year, a valuation of Rs 34,000 crore is beyond my imagination. I would suggest an immediate sell on the stock, book your losses and get out of the stock.”
”The only thing which is in favour of this stock is high promoter holding i.e. more than 99 percent. But that again is nothing to do with the kind of valuation this company gets. I think this stock can go down further,” Agarwal added.