GMR Infra

Remain invested in GMR Infra, says SP Tulsian, sptulsian.com.

Tulsian told CNBC-TV18, "I don’t think that there is dividend prospect for GMR Infra for next 3-4 years because they are into the asset creation stage of the infrastructure like airport, at Delhi Airport, Hyderabad Airport, Turkey Airport. You should look to the consolidated result because on a standalone basis, he is obviously going to see an EPS of 2 paisa, 3 paisa and all sorts of things. But on a consolidated basis because since the Delhi Airport has commenced the operations just 6 months back, they have huge burden of interest and depreciation, getting capitalize on completion of the project. But going forward, the Delhi Airport is going to be a big revenue earner for the company."

He further added, "Similar is the case for the Hyderabad Airport also because they have the land monetization also in the form of SEZ development and all that. So whoever is going for these kinds of stocks, they must have a clear horizon of at least 1-3 years because these infrastructure stocks once they create the capacity. Whether you talk of GMR, GVK, Mundra Airport or maybe JP Infra; all these stocks – all these companies, they take maybe couple of years to create the assets and then those assets will start yielding the earnings for the company thereafter. So maybe if one has a view of one year, can remain invested or otherwise should look for ideas. But I don’t think there will be any dividend prospects for the next 3 years in the company."