REC, PFC may correct 10-12%, says SP Tulsian

REC and PFC may correct 10-12%, says SP Tulsian, sptulsian.com.

Tulsian told CNBC-TV18, “Petronet LNG, expectations are that the things will be better, because if you really see the sequential performance, they have all been continuously improving that and the demand of the LNG has been quite strong and they should be able to maintain their margin because the spot realizations have been quite high. So I am expecting better numbers from the company.”
He further added, “All the power stocks have seen a good run up. We have discussed earlier also that this is a time to book the profits. Maybe a correction of 10-12 percent is warranted in REC & PFC, because we always see this kind of trading pattern happening that whenever the profit booking comes in, it comes in swiftly and it gets corrected by about double digit or so. So maybe I will wait for a correction of at least 10 percent in both the stocks.”
“NTPC, if you see the tariff behavior, the company does not have the authority to increase the power tariffs and all that and the capacity addition has not been very great. They have all stuck in the power generation capacity of 37,000-38,000 megawatt in spite of having very ambitious plans. Government will have to really attract the overseas investors by offering them discount of maybe 3-4 percent from the current price. I am not saying that there will not be appetite for the stock, but the valuation I do not see much going beyond this. So maybe a price of Rs 145-150 could be seen as a floor being fixed by the government for divestment."