Texmaco Rail a good bet from long-term perspective: P Phani Sekhar

In a chat with ET Now, P Phani Sekhar, Fund Manager-PMS, Angel Broking, shares his views on Texmaco Rail. Excerpts:

ET Now: Have you looked at any of the railway companies recently and particularly Texmaco Rail which is probably planning a 300 crores share sale this week?

P Phani Sekhar: Well clearly raising money by Texmaco Rail at this point in time has to be considered positively because this is a space that has been completely mired in inactivity and loss of investor faith. Texmaco’s profitability is nothing to write home about but again to give them the benefit of doubt, the industry was not doing anything. So I would look at it positively that means that they see a ray of light but it is difficult to at this point in time to quantify what kind of profitability model Texmaco would make simply because one is not very clear about the FDI in railways. What kind of competition will be there is also not very clear considering and competition will in turn depend on what quantum of order flow is possible in the near to medium term and whether Texmaco like companies will go and into JVs. So there are lot of uncertainties. It is a hope trade. So if you are an investor who invest for three to five years on the basis of hope, you have 5-10% of your portfolio dedicated to that kind of theme, then some of these railway stocks might be interesting and you can look at Texmaco.