SP Tulsian of sptulsian.com spoke to CNBC-TV18 about the power sector stocks that are seen rebounding now. He says that one can selectively buy Tata Power or Adani Power, however, the rest including Indiabulls and R Power is better avoided now.
In the oil & gas space, Tulsian says that though the effect of marketing margin regulation cannot be nullified, IGL (Indraprastha Gas Limited) is set to recoup losses within this week. Below is the edited transcript of his interview. Also watch the accompanying video Q: What would your take be on power stocks? One analyst view was that the very fact that it is in focus would mean that the problems cannot get any worse. Is that a good interpretation? Is there a buy in that space?
A: It maybe fair to say that things may not get worse from here, but it will be optimistic to think that anything can really happen in the next six months or so. In the case of change in power purchasing agreement (PPA) or maybe the permissibility of coal diverted for other power projects for which it has been allocated, all these things require legal views. They had been holding reservations that these things cannot be done.
Adani Power has been crying for continuation of PPA since the cost at which they have entered the PPA for 25 years is definitely not feasible and viable. All of those projects have gone operational; even with Tata Power - the Mundra Ultra Mega Power Project.
So the bleeding or the losses will continue to get incurred by these companies. There are going to be hopes, but I don
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
