Stay invested in NHPC: Akshata Deshmukh

Akshata Deshmukh, Chief Strategist-Trading at Networth Stock Broking told CNBC-TV18, "I would advise to hold on to NHPC right now. The offer for sale (OFS) dilution is definitely a kind of a headwind of sorts in the short term because we do not know at what price the OFS is likely to come in. Although the book value is around Rs 20 for the stock.”

“One needs to monitor the commencement of the stalled projects and also recovery of dues which have been issues for the company in the past. But I guess structurally the company is scheduled to do pretty well in the coming six to twelve months from now,” she added.

“The downside appears to be quite limited definitely not below Rs 19 or so. In the short term there might be correction depending on what kind of price the government decides. But nonetheless if one is willing to hold on patiently I think there is value on this stock and eventually the stock should head towards the level of about Rs 25 or Rs 26 in the near term in one year,” she said.

“I wouldn’t recommend buying more. One should just hold on to the existing investment. Why not look at other sectors like banks where there is more of a growth story like Axis Bank, ICICI Bank and post the split it augurs well for the retail segment.”