It is better to avoid Hathway Cable till the company makes profits: Seshadri Bharathan

ET Now caught up with Seshadri Bharathan, Investment Analyst to get his take on the issues of Hathway Cable and ARSS Infra.

The recent listings have been a decent first day pop. Is the grey market premium already building in resurgence of retail interest and HNI interest in the primary market particularly?

It primarily stems out from two facts, the first is that most of these issues were attractively priced if you look at Infinite Computers the issue was priced 10 times their forward earning at a multiple of 10 times and secondly the robust listing that these two companies have had. That is what is keeping the interest live in grey market for the new IPOs.

What is the call on the two issues which are opened right now Hathway Cable and ARSS Infra?

Hathway Cable is the market leader with more than 8 million connections in the cable network but till the company makes profit, considering that most of these companies are in investment phase it is better to avoid this. ARSS Infra, being a small company you can play for listing gains in it.