GMR. GVK stocks will not be much hit by ADF news: Ajay Parmar

Ajay Parmar, Head - Institutional Research, Emkay Global Financial Services in an interview with ET Now gives his views on GMR and GVK


GMR and GVK, the stocks took a bit of a pounding yesterday on that ADF news, how significant is that? Does GVK continue to reel under pressure because of the announcement and because of the fact that they would now not be able to levy the ADF fees?

In terms of GVK or GMR or for that matter wherever any company is taking a project like this, there are multiple authorities who tried to give their basic judgements on their own business models or their own revenue models. So these kind of things are anyway going to happen for any kind of an airport project. I have seen in the last six months, many authorities levying so many charges but if you look at on the overall picture, the investor give too much of weightage on those numbers but on an overall picture, it does not come to a very big amount but yes sentimentally, it definitely affects the stock. I would say the absolute amount, again I do not know how it will go through, so it will be debated over. Definitely people will try to protect themselves but finally the stock gets collided because of such kind of news. On an absolute number, those numbers are not as significant if you look at the size of the business.