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@Kapil,

Read this about GMR. Some points apply to most infra companies.

GMR's Shattered Dreams

Slothful bureaucracy, ever-changing rules, irrational competitors and fickle investors — the business of infrastructure can be quite tricky in India. Ask G.M. Rao

http://business.in.com/article/boardroom/gmrs-shattered-dreams/25792/1

Originally posted by kapil1301 Basant Sir and other Senior members quite a few infrastructure stocks are quoting between 15-30 Rs like :   GVK GMR Lanco HCC   Do you think that they can go even lower from here or one can start SIP in these stocks or any other infrastructure stock.

Though the query is addressed to seniors, it was compelling to contribute.

Most of the infrastructure stocks are long term bets with low RoCE. hence they do not suit the portfolio of long term investors (value buyers). Also they are High Beta stocks suitable for exploitation by trader's mind.

However, infrastructure stocks (sector leaders) form part of my portfolio. Only one needs to deal with it a bit differently.

Usually, when the market enters bearish phase as now, ignorant people tend to invest in safer shares read High RoCE, low Beta. However, one who is tracking the market needs to approach differently.

If market is falling, individual high beta stocks too fall steeply. However, they recover with the same vigour.  Hence net gain is higher. The problem one faces is - difficulty to of the individual stock further falling - that can be addressed by SIP. Develop your methodology - invest lump sum money every 10% fall of stock etc.

Apart from Macro situation - Infra etc. the cyclical rotation is due on Infrastructure Sector.

Is it not that infra stocks are beaten down on account of high interest rates and slow execution?
This situation should be corrected over a period of time.