Avoid Educomp: Saurabh Mukherjea, Ambit Capital

Saurabh Mukherjea, Head of Equities, Ambit Capital, in a chat with ET Now, gives his views on Educomp


Educomp is 15% higher in trade today? If you track this one, they have finally managed to securitise some of the receivables. The stock is up and about, do you think this is a slightly medium-term positive or this is a short-term move that the stock has made?

We have been longstanding sellers on Educomp. We believe we have concerns about the business model. We have concerns about the way receivables are securitised, so I would not recommend our clients a go-near that stock, short term, long term, whatever term. I do not think it make sense for our clients to be looking at Educomp.