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Jan 03, 2018 03:45 PM IST | Source: CNBC-TV18

Stay away from Bombay Rayon: Shahina Mukadam

According to Shahina Mukadam, Independent Market Expert, one may stay away from Bombay Rayon.

CNBC TV18 @moneycontrolcom

Shahina Mukadam, Independent Market Expert told CNBC-TV18, "I would believe that one should sell out Bombay Rayon. There are couple of reasons, one is that this stock rallied so sharply in the short term and then it fell off the cliff in the very short term itself. So I think the investors got stuck. If you really see, I think the debt is very high."

She further added, "There must be some news which we are not aware of which made the stock rally the way it did and then fall the way it did. However, there are problems with the stock, so fundamentally I would not be holding it unless we get clarity on what the news is exactly because the debt is very high. The debt is something around Rs 6,000 crore and the market cap is about Rs 3,500 crore. So to that extent I think the debt equity EV is very high, it is a loss making company, it is in textile business. So I think to that extent one should just stay away and only trade in it if you know what the news is which is driving the stock price. I would stay away from the stock."
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