Markets wary of businesses not delivering on expansion plans: Prakash Diwan

In a chat with ET Now, Prakash Diwan, Director, Altamount Capital Management shares his views on Just Dial. Excerpts:

ET Now: Is it a delayed response to earnings or is it something else that is working on Just Dial today?

Prakash Diwan: If you see the kind of numbers that came through and compare it with what the company projected at time of the IPO, they have enabled to manage billings and top line growth. There is absolutely no proximity to the kind of margins. The street probably has got suddenly wary of these businesses which have not delivered on the same lines as the kind of expansion that they have talked about.

E-commerce has taken very well. This is the only company that people had to come as a proxy to that industry. It is still too high a premium that we were paying for it. That is a realisation that probably started coming in. A lot of loose money and weak hands would move out of that counter and continue going out till it comes down another 18-20 per cent.