Invest in JP Associates: PN Vijay

PN Vijay, Portfolio Manager feels one can invest in JP Associates with time horizon of 3-5 years.

Vijay told CNBC-TV18, "JP Associates has taken a pummeling in the last 6 months. One is that they have got a very good cement business close to about 12 million tonnes and one is seeing a deep change in the Indian stock market if one looks on a 2-3 years time span, textiles, sugars and all these boring Indian commodities seemed to be coming back to life. So from that point of view, incrementally cement may not be a bad thing as we saw ACC etc."
He further added, "So from that point of view, cement is a very strong plus point in JP and the other point about JP is their land bank is unsurpassed, true there is an oversupply etc. But the fact is that they have got some of their best urban land bank in India and all getting developed. They have cash flow problems etc, but on a 3 to 5 years span this is a goldmine, so these are positives."
"In the case of HCC, unfortunately it's a very good construction company. I have a very high respect. I have made lot of money on HCC 10-15 years back. But this Lavasa-Jairam Ramesh combo has really made their life miserable and Lavasa is so big that if they do off HCCs other businesses, so HCC its one where fools rushing where angels fear to trade type of thing."