Buy NTPC, says VK Sharma

Buy NTPC, says VK Sharma, Head Private Broking & Wealth Management, HDFC Securities.

Sharma told CNBC-TV18, "NTPC is the best stock in the power sector at this point of time. The other companies either have an issue on coal or they have an issue on any other execution delays, which might happen. In this case at 32,000 megawatt, it is the largest company in the sector and it could add something like 5,000 megawatt this year or maybe some people expect that by the end of FY12 you could have as high as 8,000 capacity being added, so from that perspective it is best placed and at a PE of current 16 it is not an expansive buy."
He further added, "There are no downward surprises, which are available at other counters. I would look at NTPC as a good buy but you have to be a trader in this. There would be opportunities when other stocks do catch up, so maybe you can look forward to a gain of around Rs 30-40 in the next 6 to 9 months but nothing beyond that."