Jindal Steel & Power good bet: Dilip Bhat

Dilip Bhat, Joint MD at Prabhudas Lilladher told CNBC-TV18, "The way Jindal Steel & Power has done the capex in the last two years and the way they are lined up over next one and a half to two years, it has been quite a bit and it is overstretching themselves. It is like they have been creating new Jindal Steel once more from what they were two years back. So the capital intensity of the business, the poor RoE, the poor RoCs and a very slightly heavy debt is something which has been bothering the investors quite a bit apart from the fact that the controversy regarding the coal scam is also something which is playing its role."

"All in all, Jindal Steel still remains a good bet but the waiting period is pretty long maybe one-one and a half years before they can turn it in a big way but the benefits of the expansion will come maybe after one to one and a half years," he added.