Stay away from Pipavav Shipyard: Gaurang Shah

Stay away from Pipavav Shipyard, says Gaurang Shah of Geojit BNP Paribas.

Shah told CNBC-Awaaz, "Investors should stay away from Pipavav Shipyard. The stock is under pressure due to bad news. If the government investigate the deal between Pipavav and Mazgaon Dock and find anything wrong in the deal then we can see downside in stock."

The company's trailing 12-month (TTM) EPS was at Rs 0.86 per share. (Jun, 2011). The stock's price-to-earnings (P/E) ratio was 96.40. The latest book value of the company is Rs 25.40 per share. At current value, the price-to-book value of the company was 3.26.