Like Power Grid, see momentum in PFC, REC: Mayuresh Joshi

Mayuresh Joshi of Angel Broking told CNBC-TV18, "I think the whole impetus of the government specifically in terms of power reforms is clearly rubbing on to the stocks. What also happens in terms of aftermath of the demonetisation effect is that a lot of receivables have probably come through notes. So, it is not just Power Finance Corporation (PFC) or Rural Electrification Corporation (REC), a lot of the power generating companies where overdue bills were pending for a long time. I think those payments have been done substantially in a higher proportions. In that sense itself, I think you are seeing the moment rub off." "However, largely again I think I have always maintained stocks like Power Grid which is something that I continue to like. With strong capitalisation maintained by the company, Rs 12,000 crore in the first half and on target to meet its capitalisation target to Rs 28,000-30,000 odd crore, I think the commissioning of four key lines is extremely critical for the company in terms of earnings, so lines like Assam-Agra, Champa- Kurukshetra, those lines are going to be extremely critical in terms of the capitalistaion going ahead as well," he said."Even in terms of giving out orders, there are Rs 18,000 crore given in the first half and expecting another Rs 33,000 crore to be given out. So, largely with a 16 percent of topline and 19 percent bottomline growth which is still trading at around 1.6 price to adjusted books, Power Grid is something from the power space which I continue to like. I think in stocks like PFC and REC, the momentum can continue in terms of the receivables probably going down in quarter three quarter four."