If you are an investor, hold GMR from long-term view: Sandeep Singhal, Emkay Global Financial Services

In a chat with ET Now, Sandeep Singhal, Co-Head Institutional Equities, Emkay Global Financial Services shares his views about United Phosphorus.

ET Now: Why stocks like GVK, GMR trading at bankruptcy levels?

Sandeep Singhal: The issue in these stocks is that they are highly capital intensive projects, asset is very high and they have mixed airport management which can generate high cash flow and can command very high PE but they have mixed it with power sector to take advantage of that cash. But power sector is not able to finish their projects in time, some have made a mistake of launching all the power projects in parallel. Some have started gas based plant and gas is not seemingly available, coal is posing its own problems and that is why depressed sentiment could be seen. As per our assessment GMR offers a very deep value at Rs 20 level.

ET Now: So GMR since according to your analysis offers deep value at 20, at 19 should some of our retail viewers buy GMR?

Sandeep Singhal: Definitely, but you need to be an investor and do not worry about it if it falls further by 20%. Hold it for sufficient enough time to give these project some cooling off periods, so that they can start generating cash. This stock can definitely make money in our view.