Prefer Bharat Bijlee: Parag Thakkar

Parag Thakkar of HDFC Securities told CNBC-TV18, "All transformer companies are running at 40-50 percent capacity utilisation and we are seeing that due to the UDAY scheme and due to the power sector reforms if State Electricity Boards (SEB) capex comes into play then they will have a huge operating leverage." "Most importantly, Bharat Bijlee kind of company has a market cap of only Rs 600 crore while they are holding shares worth around Rs 350 crore. Seems to be a good value play of course, we don’t have a coverage, it is just that I just saw the balance sheet and the balance sheet looks very attractive and given the fact that transformer sector is going to see some momentum," he said.