Prefer L&T, says Vijay Chopra

Vijay Chopra of enochventures.com told CNBC-TV18, "GVK Power and GMR Infrastructure are debt ridden companies. I would suggest that if the investor wants to be in the infrastructure space and capital goods space then it's better to be with the top run companies. I would suggest that whenever you get profit in GVK Power and GMR Infrastructure, switch to Larsen and Toubro (L&T), which is a far safer bet than these companies.""The problem is the kind of debt which exists on the books and that's precisely the reason why we have seen these counters have crashed over the last three-four years, five years and the overall interest, even in the foreign investors or the domestic investors has been lacking in these counters," he added."GVK Power can inch up to Rs 12 or Rs 13 or maybe GMR can touch Rs 16-17 levels but if you look at the longer term perspective, I am skeptic on the kind of debt servicing these companies would be able to do because there is a lot of pressure from the banks also to recover debt from the companies which have been given lot of debt. These companies are extremely leveraged. So be in balance sheets which are less leveraged or comfortable as far as the debt goes rather than being in heavily leveraged companies. So switch to L&T would be my call," he said.