Stay away from Reliance Naval and Engineering: Sudip Bandopadhyay

Sudip Bandopadhyay, Group Chairman at Inditrade Capital told CNBC-TV18, "Reliance Naval and Engineering has got lots of inherent problems. There is no profit generating revenue producing business which we can look at and say yes this is going to give you profit, give you a revenues year-on-year, quarter-on-quarter. The ties up which the company has announced in the recent past are kind of on paper still it is not on ground it will take a long time to fructify."

"Of course new like cancellation of Rafael deal, definitely is negative because the stock got kind of pushed up based on all these news flow and if there is a reversal in the deals obviously that will be negative for this stock.

However, fundamentally, I see no rational or no reason for this stock to be purchased at current level or even at slightly lower levels. I think fundamentally, we will be able to take a view on Reliance Naval much later when it has significantly corrected and when some business are at least started producing revenues, profit and all that come later.