Rahul Singh, Head of Equity Research of Standard Chartered Securities told CNBC-TV18, "If one looks at very rationally and conservatively we think Tata Power Company is worth Rs 90. If one includes some of the recent upsides, which have come from the recent news of about mine sales and so on, one can see a closer to Rs 100 as the reasonable price target.”
“It is not probably going to be a straight line because the Central Electricity Regulatory Commission (CERC) ruling is not the end of it. One will probably see more appeals, probably the issue going to the Supreme Court (SC) and getting settled there because ultimately there are issues in this ruling, which will probably be settled only in the court of law. So it is not as clear-cut but if I were to pick one name where I think a strong government can make a difference in terms of sorting out the amount of stranded assets, which are there in the power sector, Tata Power would probably be a safe pick and would probably not have as much downside as other names would, if we don’t get a favuorable election results,” he added.
“It is a very good risk-reward at these levels in my view with Rs 100 being a reasonable kind of price target, anything beyond that will obviously depend on how the coal prices do and so on."
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
