Short Hotel Leela , says Vishal Jajoo, Nirmal Bang Sec.
Jajoo told CNBC-TV18, "Short Hotel Leela Ventures with a target price of Rs 42.10. In the present scenario the company that has got high level of debt in their books may not do well considering the fact that the interest cycles are their peak probably inching towards their peak. The company needs to raise money in the future or there is an intention to raise money may not be taken well by the markets and is if one looks at capita intensive business model then probably these are the stocks, which have corrected more in the present fall we have witnessed in the markets."
He further added, "The numbers what they have announced topline, which was expected to come at almost Rs 138 crore has come at Rs 124 crore, now what is actually worrisome is the YoY increase in interest expense, which has gone six fold though significant portion of it was anticipated but it is not supported by an increase in topline as well as the result of which the accumulative effect has come down to PAT on account of in which the company has posted a loss in this quarter. So probably this is not the best of the times to look at stocks, which have asset heavy models and as a result of which we have a short call for the day on Hotel Leela Ventures with a target price of Rs 42.10."
