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Last Updated : Feb 13, 2015 04:54 PM IST | Source: CNBC-TV18

Look at construction companies: Anand Tandon

Anand Tandon, Market Expert is of the view that one may look at construction companies.

Anand Tandon, Market Expert told CNBC-TV18, "Those companies which have no assets on their balance sheet are still not fully leveraged are the ones one can look which is construction. There is no question that there would be new bout of reconstruction activity more importantly NHAI has already given out a whole set of new orders. More are now on the engineering, procurement and construction (EPC) basis rather than on build operate transfer (BOT) basis."

"Construction companies will have an order book but you have to keep in mind that unless something dramatically changes this is a 4 percent net margin business with a 5 percent retention which is required for most contracts. So, you have to have a worry about cash flows
at every stage of growth," he added.

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First Published on Feb 13, 2015 04:45 pm
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