Buy Tata Power, says Harshavardhan Dole

Harshavardhan Dole, VP- Institutional Equities at IIFL told CNBC-TV18, "On Tata Power we have a strong buy and we think that gradually the company is consolidating its operations and focuses to improve the return on existence assets rather then rampantly investing in new projects. So we like Tata Power most among the private sector players."

"If Mundra continues to make zero percent return on equity (ROE), the fair value of the stock is anywhere between Rs 90-95 also we need to see as to what is the utilization of the proposed rights issue. I suspect that larger part of that will go down to run down the corporate level debt that the company has borrowed but for that the risk/reward is pretty much favorable for long-term investors," he added.