TRF may slip to Rs 400, says Lancelot DCunha, CEO, Sharyans Wealth Management.
DCunha told CNBC-TV18, "In TRF I don't see very significant downside because the stock has corrected on the back of the results that came out. So you have seen TRFs come out in disappointing results despite of a growth in revenues we saw, the net EBITDA margins come down almost 70%. There is also surprisingly no new order wins the project site. So this keeps their order book fixed at the current levels and with that earnings visibility becomes a concern."
He further added, "Going forward till we start seeing some traction, there may be a little bit more downside, not substantially at this level. You might see the price go down to about Rs 400 levels, because input costs are going to continue to remain high and you will see financial interest costs also start hitting the company going forward. So unless we see growth on the order book and on revenues, you will find EBITDA and profit margins under severe pressure."
