SP Tulsian`s view on power space

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SP Tulsian`s view on power space

SP Tulsian, sptulsian.com shares his view on power space.

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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

SP Tulsian, sptulsian.com shares his view on power space.

Tulsian told CNBC-TV18, "I will be very selective in going for any of these power stocks. There is no point in taking a general call. Take for instance, one can be very selective for instance maybe on Torrent Power or maybe like Adani Power but I won't be positive taking a call on Tata Power or maybe for that matter Reliance Power at this stage or maybe Jaypee Power. If you see the other stocks, maybe like Jindal Steel and Power where Naveen Jindal is meeting or maybe GMR or GVK or Sterlite Industries , all these are not the standalone power producers except for the four companies which are stated in a larger scale, who are really serious players of creating a generation capacity of 6,000-10,000 megawatts."

He further added, "One has to be very selective. Yes, government because Reliance Power is likely to be beneficiary if the government allows the use of the or the mining of the excess coal because Sassoon block which it is held by the Reliance Power can give them huge coal which can be enough for them for that Chitrangi 4,000 megawatt power project which they are setting up adjacent to the Sassoon which is also 4,000 megawatts. The problem here is more of the capital mobilization because the financial closure of all those projects has not happened. I wonder whether the equity dilution in case of Reliance Power can really happen at these levels. So, one has to be very selective. I won't rush to buy."

"Amongst the infra space inspite of holding the positive view, the power sector is the only sector which I will be knocking off from infra and still keeping my cautious to negative view on that project because still you are going to take at least 12-18 months to see light at the end of the tunnel."