Wait for fresh developments in HDIL: PN Vijay

PN Vijay, Portfolio Manager, askpnvijay.com is of the view that wait for fresh developments in HDIL.

Vijay told CNBC-TV18, "I am totally puzzled about what’s happened in IVRCL – the murder of some National Highways  Authority of India (NHAI) official or something. But I just can’t make out anything about it, so it would prefer not to  comment. Though, I have never been a great patron of the stock. HDIL is a different story. The stock has fallen 40  percent in last three trading sessions. My sense is that at some extent the selling is overdone."
He further added, "I am basing my statement purely on the facts put out in the public media. If the promoter basically  on a case study basis if he sells 1 percent of his stock and put that money as unsecured loan into the company, I think  that’s not earth-shaking, as long as the basic business model of the company is good and it is in a plan to reduce its  debt and so on."
"The company basically works in the Mumbai environment where prices are stable. It is not into a very difficult  geographies and one is seeing some traction in the execution of its well-known projects for slum redevelopment etc.  So, intrinsically, I don’t think of it as a basket case like Kingfisher or something like that. So just based on public  evidence maybe there is something else going on, which has a more serious implication, I am not aware."
"But based on this, I think HDIL at some stage would become a very interesting buy because I really believe that its  Mumbai focused business model and the quality of its assets even if the company goes bankrupt would attract very  eager buyers. So, right now, my advice on HDIL is just hold your horses and wait for fresh developments."