REC may touch Rs 185-210: Aashish Tater

Aashish Tater, Head of Research of Fortunewizard.com told CNBC-TV18, "When we recommended Rural Electrification Corporation (REC) along with Power Finance Corporation (PFC), we had given a negative call and now we are neutral to positive on both the stocks."

"The way REC and PFC have shaped out, it is right now trading at 0.7-0.75 time price to book, which we feel is very lucrative for a company like REC. The results posted recently, there has been a remarkable improvement and a consensus beat both on topline and bottomline, in fact on asset quality front too we feel this is one stock where there is lot of comfort compared to public sector undertaking (PSU) banking space. Thus, it is not right to compare REC and PFC with banking finance companies or even banking companies in the PSU space and thus deserves a re-rating on both the stock," he adds.
"We feel a target of Rs 185 and Rs 210 is likely achievable from short-term perspective. The stock will languish between Rs 158-160 zone on the downside where the accumulation should be done from medium-term perspective." Disclosure: Safe to assume that the stock discussed has been recommended to clients. No personal positions are held.