Avoid Jindal Steel & Power, says Prakash Diwan

Prakash Diwan, Director of Altamount Capital Management told CNBC-TV18, "Jindal Steel & Power (JSPL) is not a stock for the faint hearted. There are much better sorts of levels and I am definitely not going to jump into this at this point in time. If one does still get in, probably one will have to at least wait for two years at least to get 15-20 percent kind of an uptake from here."

"Apart from all the negative news flow we have seen around this, I think the entire power pack if you notice, there were lot of expectations that had built up but especially related to the coal supply issues. This was one company which we thought was independent in terms of coal resources but the inability to sell that at merchant power rates for some of these companies is going to be a big deterrent," he said. Also Read: Jindal Steel plunges 6% on UBS sell rating