Psychological.... Today Power Sector is out o f Favour....no one talks about it....power sector was darling of 2008 bull market....and today it is the neglected kid because of the interference from the respective state governments and the central government...
The good thing recently has happened is all the receivables by the power generating companies have been offset because of UDAY policy...ie the state government and the central government will pay all the dues of the respective power generating companies...also now the companies will have their own say...but one drawback these companies have is their Rate of return is pecked at a fixed rate of 15%...so it is finite and they can increase their rates as per inflation...also the revenues can increase only because of new generation of electric power by setting new plants....
Technically....NTPC is coming out of a long lull of 8 years from the high it made in 2008....8 years is too much for any sector to pass through a bear phase...it does not mean that the stock will shoot up overnight but the Risk Reward ratio is in favour of long term investing and too add the stock in ones portfolio....
My buying price for NTPC is between....164 to 168.... and in no way it is a recommendation to purchase the stock...the views expressed above are my personnel views and please consult your financial advisor before purchasing any stocks....
Do you remember the game Bid-a-Note from the TV show “Name that Tune”? Contestant x said, “I can name that tune in six notes.” Then contestant y said, “I can name that tune in five notes.” Then contestant x said, “I can name that tune in four notes.” The contestant who eventually got the chance to guess the name of the tune was the one who was willing to accept the riskiest proposition – to try on the basis of the least information.
The good thing recently has happened is all the receivables by the power generating companies have been offset because of UDAY policy...ie the state government and the central government will pay all the dues of the respective power generating companies...also now the companies will have their own say...but one drawback these companies have is their Rate of return is pecked at a fixed rate of 15%...so it is finite and they can increase their rates as per inflation...also the revenues can increase only because of new generation of electric power by setting new plants....
Technically....NTPC is coming out of a long lull of 8 years from the high it made in 2008....8 years is too much for any sector to pass through a bear phase...it does not mean that the stock will shoot up overnight but the Risk Reward ratio is in favour of long term investing and too add the stock in ones portfolio....
My buying price for NTPC is between....164 to 168.... and in no way it is a recommendation to purchase the stock...the views expressed above are my personnel views and please consult your financial advisor before purchasing any stocks....
Do you remember the game Bid-a-Note from the TV show “Name that Tune”? Contestant x said, “I can name that tune in six notes.” Then contestant y said, “I can name that tune in five notes.” Then contestant x said, “I can name that tune in four notes.” The contestant who eventually got the chance to guess the name of the tune was the one who was willing to accept the riskiest proposition – to try on the basis of the least information.
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