Sell Unitech: Rajesh Agarwal

Rajesh Agarwal of Eastern Financiers is of the view that one should sell Unitech.

Agarwal told CNBC-TV18, “As far as the news today is concerned I don’t think that there was anything surprising because we have always maintained that realty companies as such has a whole lot of corporate governance issues related to that. I feel it is still there, issue of corporate governance, liquidity problems, high debt, high inventory and as far as Unitech is concerned again new controversy of this 2G case, this is going to take a toll on the stock price also. Even the debt which is around Rs 5500 crore is too huge to service that interest cost comes to around Rs 550-600 crore odd per year which in the current scenario would be a real tough problem for Unitech. I would suggest a sell on the stock.”