REC, BGR Energy, BHEL may give good returns: SP Tulsian

REC, BGR Energy and BHEL may give good returns, says SP Tulsian, sptulsian.com.

Tulsian told CNBC-TV18, “My order of preference will start with the financing companies that is REC and PFC. On that I have been maintaining quite positive view and I see them moving further from hereon maybe by about 15%. I won’t be able to give you the timeline whether that can happen in the July series itself, but yes in the near-term of next couple of months can make these stocks to move further, because both the stocks are ruling at a PE multiple of close to 7-7.5 times with a price-to-book of 1.1-1.2 on the historic basis which in my view seems to be very low.”
He further added, “Second order of preference will be more on the cap goods. Though the power generation companies are also moving up like Adani Power or maybe Reliance Power, but I don’t think that those rallies will really sustain in case of the power generation company. So maybe in the order of preference I will keep them at the bottom, but the preference more starts with the financing companies and then with the cap goods companies like maybe the BGR Energy, BHEL, L&T, ABB, Siemens, Crompton Greaves, because you have many companies lined up in this, maybe Thermax. So these are the companies which will really stand to gain in the second preference with third preference being placed for the power generations.” Disclaimer: I have holdings in HDFC Warrants. Other stocks discussed may have been recommended to clients.