SP Tulsian negative on Punj Lloyd, infra space

Tulsian told CNBC-TV18, “The market has accepted that we are not going to see the interest rate reduction in the near-future because the kind of transmission, which has been made by the banks, they have only passed on 25 bps and I don’t know that much relief can really be enjoyed by these infrastructure stocks and the kind of run up, which we have seen in all the stocks, whether you talk of GMR Infra , GVK, even HCC, Lanco the other power generation companies they have all risen by about 40% in the last couple of months.”

He further added, “The short-term investors are finding it difficult to go beyond a point from hereon. So, they think that it is prudent to exit from the stock, book profit. So lack of buying interest, profit-booking and the concerns on the leveraged balance sheets as well as the non-relief on the interest front seen for all these companies will continue and hence again the things are likely to remain negative for all of them at least for the next one month or so.”

“Punj Lloyd, I don’t think that there are any hopes of any kind of improvement in the financial performance of this company as well. We have been hearing for last four quarters that probably the loss making contracts will come to an end of their own on their overseas turf but we are not seeing any kind of coming on that account. Generally the overall margin pressures infact if you see of any contracting companies and this probably is seen the most vulnerable amongst the lot, so again the negative view on the results and disappointment thereafter.”