Prefer Power Grid, REC: Gaurang Shah

Gaurang Shah of Geojit BNP Paribas told CNBC-TV18, "We had coverage on Power Finance Corporation (PFC) but more importantly we are quite optimistic on the power transmission and distribution side of stocks and we do have positive coverage on names like Power Grid and REC.""In Power Grid there has been a huge capex that they have undertaken and they have earmarked further more funds for additional capex and that is purely on fall back on the additional power generating capacities that have come out and eventually whatever power is generated, you need to transfer it to the consumer end. That is where we need names like Power Grid or even as a matter of fact Rural Electrification Corporation (REC) could play a very vital and a crucial role. So if you want to make a switch, we would prefer names like Power Grid or REC," he added.