Sell HDIL on rally: Mayuresh Joshi

Mayuresh Joshi, VP Institution of Angel Broking told CNBC-TV18, "If one looks at Housing Development and Infrastructure (HDIL) on a standalone basis the kind of airport rehab losses that it had booked in the last quarter has started to work on its balance sheet. Somewhere the net debt position is reasonably covered for the stock. But considering that it has to recoup its cash position or the cash flows that is just not happening on the stock. So, it has to look at its old receivables and look at new inventory sales anywhere between three to five million square feet and also do some asset sales that can actually prop-up the cash flow situation for these companies."

"There is also corporate governance plaguing the stock for some amount of time and there has been some amount of news within the media related to the interest non-payment on the kind of interest cost that it has not been able to service or is unable to service for the past few quarters. So, in that sense itself within this space the real estate pack looks a little sticky in terms of earnings projections and HDIL within that space looks even more murkier if I would put it that way," he said.
"On any substantial rally one should exit the stock and possibly look at certain stocks within the midcap IT space, like Hexaware Technologies or KPIT Cummins Infosystems where the management commentaries have been very strong and the deal pipeline is looking very robust. In that sense one can exit the stock on rallies and possibly look at these midcap IT names from a medium to long-term perspective."