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Last Updated : Jun 11, 2013 07:01 PM IST | Source: CNBC-TV18

Don't see turnaround in IVRCL soon, says Phani Sekhar

Phani Sekhar, fund manager of Angel Broking feel the turnaround in IVRCL will be dependent on investment cycle recovery.

Phani Sekhar, fund manager of Angel Broking told CNBC-TV18, “Over the short-term to medium-term I see IVRCL stock heading nowhere because these are all proxies to the recovery in the investment cycle.”

He further added, “The way the balance sheets are structured especially the capital structure for many of these construction companies and in between they have also dabbled in owning assets, there is absolutely no hope when we have a sustained slowdown panning to two-three years because order book has slowed down, expenditure does not go down beyond a point because of the very high interest cost. So the direct adverse impact is on the bottomline something that we have seen for almost two years now.”

“There is no reason to believe that it will turn around anytime soon unless and until the investment cycle recovers,” Phani Sekhar said.

First Published on Jun 11, 2013 07:01 pm