Pirmal will get battering in the short term: Avinash Gorakshekar, Edelweiss Financial Advisors

Avinash Gorakshekar, VP Research, Edelweiss Financial Advisors, in an interview with ET Now, gives his stock views on Piramal Healthcare


What are your views on Pirmal Healthcare?

Clearly the move which has come today is clearly markets have not liked to the idea that the company is floating to NBFCs and PE fund. Clearly as a house we have recommended clients to hold on but our sense is that some more clarity needs to come out from the management on this because clearly they have a very large cash kitty and the markets were expecting some further possibly a big kind of announcement on sectors which are more related to their business. If they get into infrastructure financing or a PE based fund clearly the markets have shown some sort of a negative tendency for the simple reason that there is no clarity on the earning streams from these businesses and the moment the market gets a sense that these are long term gestation businesses. I think the markets would obviously not like it because they have sold out a business which was very strong and now with the cash, there were expectations of a very fat dividend may be liberal payout to shareholders that has not happened. To some extent the stock would get a battering in the shorter term because obviously it is slightly against investors sentiment.