Exit Jaiprakash Associates, says Phani Sekhar

Phani Sekhar, Fund Manager-PMS at Angel Broking told CNBC-TV18, "Jaiprakash Associates is not a very good stock to be held for longer-term. They are trying to sell their core as well as non core assets in order to reduce their debt. That exercise by all means will continue for at least six to nine months till they get into some kind of a shape. Even if growth were to happen tomorrow hypothetically I don’t think Jaiprakash Associates is in any financial shape to really take advantage of that growth.”

“So if they are able to reduce debt meaningfully over the next six to nine months and by that time if growth starts happening then there is some chance that you will see improvements in the stock. However, between now and then there will be a lot of volatility and I don’t think it is worth the way it really to look for stock price to Rs 48 and beyond to really make money on this. So investors should exit and shift to frontline private sector bank like an Axis Bank or ICICI Bank,” he added.