Stay away from infra space: P Phani Sekhar, Angel Broking

P Phani Sekhar, Fund Manager-PMS, Angel Broking, in a chat with ET Now, gives his views on infra space


Rate cuts would probably augur well for the entire infra space but fundamentally a Lanco and a GVK, two companies which have got assets which can probably disposed off or stakes can be sold for moneys coming in, you play these two or stay away?

I do not completely buy the theory that assets can be disposed off in this kind of an environment. You have assets on paper, but today is an environment which you cannot really categorise either being growth or distress and typically you have different classes of buyers who categorise themselves as either growth investors or distress investors. In the entire landscape of power there are no big deals that are happening because growth investors typically do not see visibility and the promoters are not really willing to sell those assets at distressed values to attract some of those kind of names. I would not be buying this particular line of thinking that assets can be sold off and in the absence of that since I do not see much visibility from next four to six quarters, I would stay away barring a very steep correction of 20-30% which might trigger a re-think.