Infra and Power Sector Stock

Hi

I have invested some amount in Infra and power Sector which are in huge loss. Please suggest with those and the expected TurnAround in these stocks.
1. GMR Infra/ GVK Power/ Adani Power/ JP Power/ JP Infra/ Tata Power/Lanco Infra/Sail
I can hold these stock as long as years.
None of them provided me any profit in last 2 years. Please suggest what to do

 

The thing is most of these companies have huge debt on their books. When your interest cost is far more than the money that you earn then the company is bound to be in losses. You should keep a close eye on any plans of debt restructuring or debt refinancing by the companies. Only when the debt is serviced or reduced these companies would have the room to grow or be profitable atleast. You could either buy more and try to lower your average cost of purchase and then sell them on a rally, but this is a very risky proposition since it means additional exposure to companies having a bad financial health and there is no guarantee that the rally may happen or not. The other option is that you can take a loss and move on to better quality companies. The third option would be to do nothing right now and invest in better quality scripts right now and as and when there is news of debt reduction in these companies and you think the fundamentals have turned around you can increase your exposure that time.

 

@Atul Agrawal Power is a messed up story in India. The main issue is the regulation of coal prices, supply issues, heavy debt, power price regulations etc. The problem which is being fixed right now is the transmission and distribution. Thats where most investment is going to come in I think. Look at T&D co.s. They will be a good play in long run, or even power trading co.s like PTC india and PTC Finance as they don't face debt issues. Infra stocks like MBL, IRB, Ashoka are also good to look at.

For the stocks that you have mentioned, your money will be locked in for a loooong time as they will take their own sweet time to come to profits. I suggest that you add the stocks I mentioned above and make up for your losses. Good luck!