ARSS can go further up: Sunil Shah

Do you recommended your clients the issue of ARSS Infra and what are you advising them at this point in time?

Sunil Shah: ARSS is certainly one of the good infrastructure companies which is now available for the investors, which is being listed today.

Again largely on the back of valuation its trading at about 7 times FY11 numbers so even after the price appreciation which has come up after the listing there is still lot of steam left in the stock to further go up from here.

More importantly, almost 85% of its order book is from the government-entity, so that gives a huge amount of earnings visibility for the stock and at 7 times it’s a good investment proposition. Largely it’s a railway infrastructure and in the recent budget also the roadmap was laid out for about 1000 km of railway connectivity which is to be there on an annual basis. So I think it’s a good stock to be in and certainly at a better valuation then most of the other infra companies.