Don't sell Rolta India in a hurry, wait for more clarity: Deven Choksey

In a chat with ET Now, Deven Choksey, MD, K R Choksey Securities, shares his view on Rolta India.

ET Now: How one should deal with stocks like Rolta India? The stock was in the limelight on Thursday, but for negative reasons. It is an unknown fear as to what has happened. There is a research report alleging that the company has manipulated its capex figures. But, the management has clarified that all the comments made in the report are baseless. Nonetheless, the market has not really taken the management's view seriously. What would you advise to the existing investors.

Deven Choksey: Rolta is a defence story. There are a lot of convincing arguments for investors to hold on to the stock. But unfortunately, we do not have a complete clarity on the subject at this point of time. Hence, I am not in a position to give a very clear verdict on this aspect as to what one should do. But to my mind, the business per se is offering a lot of potential, particularly on the defence side. Certainly, investors should carry out the check, before taking any action. To my mind, I would not sell till the time, I get fully convinced that there has been really genuine errors on the company's part for accounting on the capex side.