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Last Updated : Jan 07, 2016 04:04 PM IST | Source: CNBC-TV18

Exit Electrosteel Steels, says Rajesh Agarwal

Rajesh Agarwal of Aum Capital suggests selling Electrosteel Steels.

Rajesh Agarwal of Aum Capital told CNBC-TV18, "It's risky to hold on to Electrosteel Steels on a hope that some strategic investor would come in and take over the company. We should not forget that not only this company but the entire steel industry is in dumps right now and a lot of stocks are available at an attractive discount, because if you even look at Tata Steel; its trading at a huge discount to its value, so what is the point in sticking to Electrosteel Steels kind of stock where you have a company which has gone to a corporate debt restructuring (CDR), they have around Rs 10,000 crore odd debt on FY15 and Rs 2,500 crore of debt is converted into equity."

"The only hope is some strategic partner would walk in and at that time the stock would shoot up by around 20 percent but that is a long call considering the fact that the numbers are very bad and getting a strategic partner would be a difficult job. So it's better to get out of the stock as soon as one can," he said.

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First Published on Jan 7, 2016 04:04 pm
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