Buy Reliance Infrastructure from long term perspective: Deven Choksey

Deven Choksey, MD, KR Choksey Securities in an interview with ET Now talks about Reliance Infrastructure.

Are you a buyer in ADAG Group companies, Reliance Infra, Reliance Communication and Reliance Capital?

Reliance Infrastructure looks to be the better of the lot from the point of view that yes, you have larger amount of visibility on the project site, road projects as well as metro rail projects which are going to go live now. They are some of the projects which are giving lot of clarity.

At the same time on the valuation front if you look at Reliance Infra, it is available below the book value. So to a greater extent on debt front, the comfort level is high. The main point which I would like to put across here is that this is a company which is capital hungry and every stage when you start putting across new projects, you require further amount of capital.

That is not something which an investor would always like to contribute to. So that is where one is not very confident about but if one wants to take a long term bet and the likes of insurance companies or pension fund people if they want to buy probably this is a good time.