Adani Power, Tata Power good bets: SP Tulsian

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Adani Power, Tata Power good bets: SP Tulsian

Adani Power and Tata Power are good bets, says SP Tulsian, sptulsian.com.

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Excerpts from Closing Bell on CNBC-TV18 Watch the full show » ALSO READ See previous views by SP Tulsian See what other Experts & Brokerages are saying about Adani Power See messages about Adani Power

Adani Power and Tata Power  are good bets, says SP Tulsian, sptulsian.com.

Tulsian told CNBC-TV18, "For power space things may not go worse from here, but it will be again optimistic to think that anything can really come in next six months or so, because first take the case of change in the PPA or maybe the allow ability of the coal diverted for the other power projects for which it has been allocated. All these things require legal view which had been holding their reservations that these all things cannot be done and as long as if the PPA continues to remain in operation for which Adani Power has been crying that the cost at which they have entered for 25 years is definitely not feasible and viable. So the continuation of the losses, because all of those projects have gone operational, whether you take the case of Tata Power, their Mundra Ultra Megapower Project. So the bleeding or the losses will continue to get incurred by these companies or the new capacity created."

He further added, "There are going to be hopes, but I don't think that those things will come in in the near-term or in the next three to six months. So in that scenario it will not be viable or sensible when the other stocks on a relative basis, the other sectors are available for buying into. So one maybe very selective, because take the case of Adani Enterprise and Adani Power, because Adani Power is also in a way proxy play for power, because the Adani Enterprise is getting its value from Mundra Port and Adani Power Holding. So in both these stocks you have a market making element or maybe the informed circles keep buying those stocks. So one can be selective there. One can be selective in Tata Power, because lot of buying interest, more especially of the institutional one we could see there. Torrent Power could fall in that category, but I don't think that I will really be comfortable in taking the call on Indiabulls Power or maybe Reliance Power for that matter."