Choose Infra cos with clean balance sheets: Mehrab Irani

In a chat with ET Now, Mehrab Irani, Investment Manager, Tata Investment Corporation Ltd., shares his views on Infra stocks.

ET Now: What is your call on Infra stocks?

Mehrab Irani: Infrastructure has been under pressure for the last few quarters. The results have not been good. The order intake is not good. Execution has been very slow. The government reforms have not taken place and the high interest rates have made lot of projects unviable. That interest cost debt etc. has gone up. So, within the infrastructure space, I would look at those companies which do not have P&L earnings problem currently.

However, which are much leaner balance sheets where the debt equity is under control, their interest cost is under control and they have not done unnecessary acquisitions whether locally or globally at very high cost. I would look at those companies with cleaner balance sheets within the infra space at this point of time.