Avoid Deccan Chronicle: P Phani Sekhar, Angel Broking

In a chat with ET Now, P Phani Sekhar, Fund Manager-PMS, Angel Broking, shares his views on Deccan Chronicle.

ET Now: On the charts Deccan Chronicle?

P Phani Sekhar: If you look at it as a business, it has never been dominant in the geographies or the business segment that it operates in. So, if one has to be in the print media segment then I would prefer stocks such as DB Corp or a Jagran Prakashan. So Deccan Chronicle has had legacy problems related to receivables, then they did some kind of restructuring in order to assuage investors, obviously that has not worked. Now, there was a catalyst of selling stake in the IPL team. I do not know what kind of valuations it will fetch because that team has been very rather very inconsistent and in this kind of a market, many investors would not be enthused in buying these kind of concepts like IPL teams. And for the valuations that Deccan Chronicle might demand. Considering all this, one should not look at entering this stock. For investors who are already there, if buying prices anywhere close or you can reach it within 5%-10% of the stock bouncing back, it is a good idea to get out of these kind of stories.