SP Tulsian negative on NTPC, may fall to Rs 105-110

SP Tulsian of sptulsian.com told CNBC-TV18, "I am positive on Tata Power, neutral on Adani Power and negative on NTPC. Tata Power has one Ultra Mega Power Project. They got that relief retrospectively and I don’t think that now the prices will be reviewed after three years. If you really see the problem at Tata Power's end, it was only the exchange fluctuation. I don’t think that the procurement was really a big problem, so that got sorted out.”

He further added, “In NTPC, the big problem is the return on equity will fall considerably. Their returns have been linked with the generation and not with the capacity. The kind of selling which we have been seeing in the cash segment seems likely to continue. If you really go by the EPS of Rs 12-13 for FY14 is bound to fall for FY15 may be to a level of about Rs 11 or so. So, obviously giving a discounting of more than 9 or a multiple of more than 9 will be difficult. So, look for a level of Rs 105-110 may be in next week or so or may be next 10-15 days.”

“In Adani Power things are still looking very dicey because if you see the huge capacity creation at their end, though they got a price hike, but there are so many problems happening at their end as well," Tulsian said.