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Apr 04, 2012, 11.32 AM IST
Buy Torrent Power, says Saurabh Mukherjea, Ambit Capital.
Buy Torrent Power , says Saurabh Mukherjea, Ambit Capital.
Mukherjea told CNBC-TV18, "If you leave aside the Coal India shareholders for shareholders of power utilities the situation is incrementally better, but we donít see enough there to warrant optimism about power companies whose balance sheets are in trouble. There are a few power players such as CESC or a Torrent Power where there is a decent balance sheet for you to focus on. But really that apart everybody else has debt equity at such levels that itís trouble to see how they will make it through the next couple of years."
He further added, "Whilst the Coal India FSAs, thanks to the presidential dictate will probably be honored you still have the open question on whether the State Electricity Boards will pay the power utilities anything for the power that they are getting. So you have a customer who is bankrupt and you have input cost issues. So we still remain circumspect on utilities. Names such as Torrent Power have been buy recommendations from our house for the year but really that apart there isnít that much in the power sector that we are very enthusiastic about."
May 17 2013, 12:38
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May 17 2013, 12:39
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