Hold HCC at current levels, says Sekhar

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Hold HCC at current levels, says Sekhar

Hold HCC at current levels, says Phani Sekhar, Fund Manager, Angel Broking.

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Excerpts from Your Stocks on CNBC-TV18 Watch the full show » ALSO READ See previous views by Phani Sekhar See what other Experts & Brokerages are saying about Hind Constr See messages about Hind Constr

Hold HCC at current levels, says Phani Sekhar, Fund Manager, Angel Broking.

Sekhar told CNBC-TV18, "Apart from the Lavasa hangover that is all over its head there are some structural issues with HCC which have turned very serious in this kind of business environment which is the nature of its order book which is predominantly very long gestation because it has a huge exposure to irrigation and hydropower and on top of that you have working capital cycle which has gone up to almost 350 days, debt equity is almost 2.8 to 3 times. These are not parameters that are going to excite whole lot of investors. You have a scenario where interest rates starts coming down and you have order book increasing although I must say that the order book of HCC is pretty robust around 3.8 times of this year's revenues but the order book composition alters and very importantly the uncertainty on Lavasa evades till such time HCC will continue to be valuable but at the same time remain underperformer."

He further added, "So what the investor needs to do is hold on to HCC at the current levels and have time on his hands, I am sure this is a multibaggers on his hands but important thing is he should wait for at least 1-1.5 year."