Betadpur told CNBC-TV18, "KSK Energy Ventures is a power producer but unlike Indiabulls Power or Adani Power, they already have power plants in operations and earnings are coming through from these plants. This quarter we had a spectacular earnings growth of 69% year-on-year (YoY) because their 270 megawatt plant came onstream. Now for the rest of the year, they have about another 450 megawatt that is going to come onstream."
He further added, "This stock is incredibly cheap at a P/E of about nine times '12 earnings compare to other companies where there are no earnings at all at this point. Even compared to a Tata Power, this company is exceedingly cheap. Again they have a very strong merchant power sale where they are getting almost Rs 5 per unit. So clearly this is a value stock in the entire power space and they also have huge upside coming in because they also have 3,600 megawatt power plant in Chattisgarh which will be coming onstream in the near future."
Disclosure: My clients and I may have personal holding in the above stock.
