Avoid NTPC, says Ashu Madan

Ashu Madan, President of Core Client Group at Religare Securities is of the view that one should avoid NTPC. He does not see a major upside in the stock.

Madan told CNBC-TV18, "I would not advice to be in National Thermal Power Corporation (NTPC). If somebody has to be in the stock then it has to be in a momentum stock or a stock which can give reasonable returns. So if you look at the fundamental factors of NTPC they have been hurt because of lower plant capacity factors, monsoon or rainfall in the coal areas, problem with Coal India about inadequate coal supply. So all these put together they were under pressure." "Probably there would be some silver lining and might see an upside. So may be in a short span of time we might see a price of Rs 155-160 but I don't see a major upside in this stock. So it will not be a prudent move to keep a stock which is not high beta."