Shriram EPC surges over 13% on debt recast nod

Chennai-based engineering firm Shriram EPC surged over 13% in intraday trade today to Rs 38.65.

ET Now spoke to Avinnash Gorakssakar, Head of Research, Mintdirect.com, on the stock.

ET Now: A very quick word on Shriram EPC, have you looked at the news that CDR has approved its debt restructuring? Do you have a view there?

Avinnash Gorakssakar: The news is positive for the company and my guess is that it will obviously help them reschedule their cash flows and debt payments which will improve their cash flows going forward. Probably from the coming quarters we could see some improvement.

On the debt side something like 2500 crore is going to be rescheduled so to that extent it definitely is a positive sign but for earnings to actually come and be little attractive, there is still a long way to go. This news flow will help the stock to move in positive territory for Q5 quite some days.