JP Associates will continue to suffer on debt concerns: IIFL Wealth

In a chat with ET Now, Prashasta Seth, Senior Fund Manager, IIFL Wealth, shares his views on JP Associates.

ET Now: What is your call on JP Associates at 64.35 for the stock you think the selling has done for the day?

Prashasta Seth: I would not know whether it is done for the day or not, but the problem remains, ss has been repeatedly said, in the form of debt. There is no visibility on how the debt will be pared. it is a very asset heavy model that they have and unfortunately the cash flows that you will get from the assets would not be able to reduce the debt that they have on the balance sheet. So till the concerns remain on the balance sheet and the markets are focussed more on the quality of earnings and cash flows, it is very unlikely that the stock will do well. Stock will continue to suffer because of concerns on the debt side so I would not think that the stock is going to bounce back anytime soon.