Duncan Fertilisers acquisition won’t have a major impact on JP Associates stock: Fayeza Hafizee, Intime Spectrum Securities

Fayeza Hafizee, Vice President, Institutional Sales, Intime Spectrum Securities Ltd, in a chat with ET Now talks about JP Associates.

We have already seen some announcement; a likely 74% stake is what JP Associates is buying as far as Duncan Fertilisers is concerned. What is your view?

Once again, it is a very small acquisition for Jaiprakash Associates. I would not really expect this acquisition to have a major impact on the Jaiprakash stock. For Duncan definitely the fact that it was the dealing unit and the fact that it will become debt free is good news and if it is going to be inducting a new partner etc, all of that should see the stock price move up even further.

The recommendation really would be that only buy this counter if you are willing to wait for all the developments to come through and definitely the risk levels on the counter are still high. So it is again for an aggressive asset player or an aggressive buyer who is willing to hold for the entire run. Otherwise I would really avoid the counter right now.