Rail Budget positive for EPC cos including Simplex Infra; working capital issues a drag: Parag Thakkar, HDFC Securities.

In a chat with ET Now. Parag Thakkar of HDFC Securities shares his views on EPC companies.

ET Now: Was there anything in the Rail Budget for the engineering and project management side?

Parag Thakkar: All EPC (engineering, procurement and construction) companies, such as Simplex Infra will stand to gain. But, the major problem in those businesses — apart from companies such as KNR — is that working capital is a big issue and that needs to be addressed separately.
So, working capital issues persist and construction companies need to address them. If they manage to address the issue, then their stocks can be multibaggers over as the opportunity seems to be huge.