Prefer NTPC to Jaiprakash Power: Sharma

VK Sharma, Head Private Broking & Wealth Management at HDFC advised buying NTPC instead of Jaiprakash Power if one has a horizon of 10 years.

Sharma told CNBC-TV18, “In order to hold Jaiprakash Power for the next 10 years you need to have something stronger in the hands. If the investor has that kind of a horizon I would straight away ask him to switch from this company to another company in the same sector and it is NTPC.”
“We have to see the valuations, currently 2000 Megawatt capacity, another 3500 Megawatt is coming up but it is available at just 1.4 times its next years book value. If one has to pay this kind of valuations then why not NTPC which is available at just 1.5 times. My view is that switch over to NTPC if your horizon is 10 years. Although you hold the stock for 10 years but you should take a annual review of how things are proceeding,” Sharma added.