SP Tulsian of sptulsian.com shares his comments on infra space.
Tulsian told CNBC-TV18, I will detach myself initially from the macro numbers but if I state with focus on the infrastructure in fact I have expressed my views couple of days back also that I will be very circumspect on the airport portfolio because the orders for Maldives airport coming in where GMR Infra have been restrained from charging any ADF in fact we have seen this problem hanging for Delhi, Hyderabad, Bangalore and Mumbai and all these four airports which have all been created, these airport owners both GMR and GVK they dont have any respite even for recovery of their due whether it is from Kingfisher or from Air India, they get a phone call from the ministry or maybe from the promoter to hold on the whole thing.
He further added, Where the huge amount has been blocked up maybe to the extent of collectively about USD 8-10 million in this four portfolio so that is one thing but if I just connect with the macro numbers one has to take a call directly on the capital goods sector because it has the branch out business getting release for the EPC companies for the pure contracting plays. I am not including the capital goods makers like turbine boilers and generators in this category maybe like BHEL, L&T and all that because I dont think there is too much concerns on that account because if you have order pipeline of about three-four years I dont think there is too much concerns happening on that but other contracts like EPC and all that which generally have a pipeline of about 12-18 months or maximum 18-24 months will definitely get cooled down because no newcapacities are seen getting created.
So general EPC players maybe the general contracting companies and the companies which are owning the big assets like this or even for that matter I will include sea port and all that excluding Mundra Port if you see many of the sea ports are being taken by the company and overall there will be break for all the related infrastructure activity operating in this space.
Stocks in this article