Great value emerging in NTPC, Power Grid: Parag Thakkar

Parag Thakkar of HDFC Securities told CNBC-TV18, "Apart from banks and some of the auto stocks which we keep on talking about, some of the great value is emerging in some of the stocks like NTPC and Power Grid Corporation of India where NTPC is trading at one time book on FY17 basis. It will make operating cash flow of around Rs 15,000 crore and market cap is now lesser than Rs 95,000 crore. They have already 45,000 MW operational and 24,000 MW are under construction. So, that will also give them at least 8-9 percent earnings growth." "The earnings growth in Power Grid is even far more, 15-17 percent and with interest rates likely to decline, they will offer you safe bond kind of a situation where the bond prices will go up as the yield go down and as the interest rates go down, the value of these businesses should increase further more. Of course because of the complete loss of faith in the commodities and some of the stocks where we feel that cash is around 65-70 percent of the market cap, they are called lowest cost producers. They also offer exciting opportunities. Those names are Hindustan Zinc and Nalco but there is a great contra opportunity over there. Something like ONGC where the oil prices if they start to show some strength from here on, there is a great value in its price," he said.