PN Vijay, Portfolio Manager, www.askpnvijay.com feels that one should be cautious on PFC and REC .
Vijay told CNBC-TV18, "This class of NBFC are viewed as caution because the asset quality there maybe particularly under strain, these are government instrumentalities and to that extent they do not suffer from lack of financing. But they have big electricity boards which are very strap for cash and they may restructure and pip the market, so this whole lot of them, power trading slightly different but the PFC and REC one should be cautious till the power sector improves and there are better NBFCs to buy into right now."
