I am not positive on infrastructure companies: Paras Adenwala

ET Now caught up with Paras Adenwala, MD & Principal Portfolio Manager, Capital Portfolio Advisors to get his views on the infra pack, the likes of GMR Infra which has taken a severe beating but bounced back on Saturday's trade.

Couple of spaces have been beaten down and want your view on the infra pack, the likes of GMR Infra which has taken a severe beating but bounced back on Saturday's trade, what do you do with that one or the likes?

I am not the positive on infrastructure companies which need huge amount of cash time and again. So something like a GMR Infra or a GVK, they may really move up but looking at perennial negative cash flows being generated by these companies, I would definitely not really look into them but the companies like those who are into road development, those who are into building bridges, water irrigation, these are the companies one should be looking into.

They have fantastic order book positions, so visibility is very much there for the next three to four years. Valuations which were not very cheap earlier now have started beginning to look attractive in several cases and within this space again, there are some companies which have a reasonably robust balance sheet and very tight working capital management. So I would really look into them with a longer term perspective.

Which ones?

For example, someone like a BL Kashyap or someone like Ahluwalia Contracts. These are companies which look interesting and have a reasonably clean balance sheet and someone like Ahluwalia has to complete the contracts pertained to Delhi before the Commonwealth Games start and therefore the numbers will keep on rolling out to be very very strong and valuations are not particular real estates. So I would really buy into such kind of companies.