SP Tulsian, sptulsian.com shares his view on GVK Power .
Tulsian told CNBC-TV18, "It seems that market has now started discounting the results which on face of it, it looks negative because if you see all this stocks if I compare these infra stocks where the huge debts are lying in the books of the company because of their PPP projects so I compare them with realty stocks, if they are not correcting. We have seen a huge run up today we have seen the results of HDIL which has in my view has been very bad. So if the realty stocks can keep on selling their FSI, completed projects, TDRs and can show some kind of performance so the deleveraging of the infra companies can really happen very fast. The kind of announcements having made by the companies like IVRCL and all that they are looking to exit from the projects."
He further added, "When GMR or IVRCL has moved up obviously GVL, Lanco and NCC has to catch on with that. So it seems that there is a big disconnect between the results because they are all on the expected lines. If you take the case of GVK Power the huge increase in interest cost by about Rs 100 crore so market seems to have factored in and if you take now it seems that started taking the overall valuations on the stock on a relative basis- that if the left out stocks are really remained like GVK, NCC or Lanco probably that is the reason we are seeing the renewed buying momentum or the interest continuing in these stocks inspite of the flat to poor results."
