Sell Hindustan Construction Company (HCC) on every rise, says Vishal Jajoo, Sr Equity Research Analyst, Nirmal Bang Securities.
Jajoo told CNBC-TV18, "Incase of HCC the trigger was the valuation incase of Lavasa. Because if one looks at the consolidated debt in the books of the company it is close to Rs 8000 crore and a significant portion of it is attributable to Lavasa. So the debt continues to be in the books of the company whereas the corresponding assets which were suppose to be unlocked and generate some value, there is no movement on that front. As a result of which the performance from that segment continues to be muted."
He further added, "Secondly the order inflow is a bit delayed in the execution as a result of high working capital cycle is also delayed. So as of now I don't see any such trigger happening in incase of HCC though from the lower levels the stock has bounced. I think every rise if at all there is a rise should be used to basically sell off the stock."
