Don't buy HDIL, says Pankaj Jain

Pankaj Jain, Director at Sunteck Wealthmax Capital Pvt Ltd told CNBC-TV18, "It is for sure that HDIL is on a very sticky wicket and if we see what is happening around, I think about six months back when management sold about one percent of their stake just to garner about Rs 50-60 crore, I think that was the beginning and markets did not digest that whatever explanation that came out from management at that point of time and thereafter we have seen series of bad news culminating into very poor Q4 results. They have shown loss of about Rs 279 crore.”

He further added, “Mumbai International Airport – they have issued a show cause notice for cancellation of the project and recently we have seen Citibank selling about 25 lakh shares at almost 52-week low.”
“I think company is in a very poor shape and apart from that there is another fundamental reason – what we can see across the board, across major region, northern region and western region that sales are not just taking off. In think in the last two-three months sales have been very poor and stock market reads the thing much in advance.”
“So taking all these factors into consideration I really cannot answer whether company can go into bankruptcy or not. I don’t think the fundamentals are all that poor as of now, but things seem to be pretty on negative zone, negative kind of thing and I am definitely not a buyer for this stock.”
“They are at almost 52-week lows, but somehow I have hunch, gut feeling that these 52-week lows would be broken on downside rather than trying to stabilise at current levels.”