Hold JP Associates, says PN Vijay

Hold Jaiprakash Associates, says PN Vijay, Portfolio Manager.

Vijay told CNBC-TV18, "I have been very negative on JP Associates for last three year given the high level of debt. They have got a huge amount of debt. But I am getting a bit more neutral for two reasons. One is that we are getting a date on the opening of the Yamuna Expressway on 9th of August. So that’s going to unleash a lot of cash flow for them in terms of tolls that’s going to be heavily used by people."
He further added, "The toll and commercialization of the land parcels that they have got, that and the fact that they are seriously trying to sell some of their cement assets may bring down the debt and make the core business more profitable. My own sense is that I would not buy JP Associates, but if I am holding it I will hold on some more time to see the impact of these two positive triggers."