Orchid Chemical sitting under large debt kitty, to be under pressure: Miintdirect.com

In a chat with ET Now, Avinnash Gorakssakar, Head of Research, Miintdirect.com, shares his views on Motherson Sumi. Excerpt:

ET Now: Have you heard anything with regards to Orchid Chemical?

Avinnash Gorakssakar: It is a stock which most of the retail investors and the larger investors are playing on news flows. There could possibly be a management change.

Recently, there were some unconfirmed report saying that the existing Indian management holding could be taken by the foreign partner; that was why the stock reacted upwards by about 16-18 per cent.

Even in the coming quarter, on a fundamental basis, this stock will be under pressure as the company is sitting on a large debt kitty. Incrementally, margins did not show any kind great improvement in the second quarter. You could see some selling but at this level, people are looking at it as a kind of takeover or maybe a restructuring candidate. It is why you could see these kind of spurts of say 10-12 per cent in the last two-three days.