Chugh told CNBC-TV18, "Gujarat Industrial Power Corporation Ltd, GIPCL came out with extremely good numbers for quarter ended March 2009. This company saw a 4.5 times jump in its profit after tax and this was achieve mainly on account of reduction in the interest cost which was due to company reducing its debt in the current financial year. For full year too the interest cost is down close to 40%."
He further added, "Besides power generation, this company has secured its raw material. It has got huge legnite mines and also lime stone mines so it does not really have to worry about the raw material. This company is on an expansion drive and they are adding more capacity. The best part is that this could be a possible disinvestment candidate of the Gujarat government and if you closely look at the financials and valuations of the company it is trading at extremely low valuations and in case bids are invited whenever the government decides to disinvest this company. The bid price could be substantially higher compared to what the current valuations of the company."
Disclosure: Analyst may have a vested interest in the above stock.
