GVK power and infra - turn around infra story?

GVK sep 30 2015 cons results give some signs of turnaround. Does any one think so?
@Meenakshi Razdan @good stocks

 

I don't think so, Power is still a drag, they got some relief because of commissioning of Alakanand Hydro Project. Here's my take:

a. Power Business: Struggling and a complete drag on the group

b. Road Business: Not generating enough ROE (The Jaipur Toll business did well, but that's not enough!)

c. Airports: That is the only attractive piece out there, I am not sure how would they deal with an IPO?. If existing investors would be allotted shares in GVK Airports and then the entity would proceed for IPO etc?. Or if there would be a divestment and the funds would be used to payoff loans at the holding level. I would prefer investors being offered shares in the Airport unit (which looks really bleak). Just using funds to payoff debt at the group levels is like throwing good money after bad business ( However I font see a choice for GVK - Lenders would have actually forced the management to en cash some of their investments)
d. I have followed the stock as well as the management for about 2 years now. I don't have too much confidence on their outlook - They have not kept word with their divestment plans, debt reduction timelines etc. I would still avoid it. Just check Money control for some recommendations _ I guess SP Tulsian once mentioned that these are worthless companies (for Equity Holders) - I was furious then (couple of years back) _ I thought there was tremendous value in the stock - Honestly I think he was right. You may see a bounce back or the stock double for various reasons - However this is never going to be a multi-bagger over the next few years.

Just my thoughts!.

 

power business is turning profitable from this sep 30 2015 qtr

 

@w4wealth Are you contrarian? It requires patience and guts. There can be long wait. Rewards may or may not come. I am not contrarian. I prefer stocks with definite gains (like Pharma stocks). If you are contrarian I appreciate it very much

 

@Srouta Mukherjee i am not a contrarian but was looking for turn around stocks. since GVK power production has started and improvement is seen in financials i think it can be good .