Jaiprakash Associates is a risky bet: Mehraboon Irani

In a chat with ET Now, Mehraboon Irani, Principal & Head-Private Client Group Business, Nirmal Bang Securities shares his views on J P Associates.

ET Now: There is a bit of a rebound in Jaiprakash Associates what is your view on this stock?

Mehraboon Irani: Absolutely risky if I was asked a risky bet may be three-four months ago JP will have been one of them. Looking at the way what the management did or what the promoter did it has left absolutely a bitter taste and I have been witnessed to many such companies in the past where promoters tried to do something flashy the market does not forgive you in a hurry.

JP Associates at most will be a stock which one can trade in if the the decline stops, wait for the rally to complete and possibly exit. Honestly, I am telling you that six months ago-four months ago I would had said it is a decent bet Rs 45-50, Rs 55 which was the price but after what the promoter did honestly if you ask me a Rs 28 or Rs 30 also whether one should buy from a longer term basis my answer would be no.

If somebody wants to buy a stock with a little bit of a risk and when the management is really working on correcting their mistakes which they did in the past I would say it is HDIL. It is one company where I am quite confident the management is on the right track and trying to rectify the mistakes which it has made and I would say 5% of the money should be in risky stocks, risky bets HDIL would be on top of my list.