Bearish on NTPC: Avinnash Gorakssakar

In a chat with ET Now, Avinnash Gorakssakar, Head of Research, Mintdirect.com, shares his views on NTPC.

ET Now: I was looking at the list of the top loser and two days in a row, NTPC has been one of the top losers, what is the call now, would you bottom fish out here or you believe there could be lower levels here?

Avinnash Gorakssakar: If you see the history of the stock, it has been more of a sleepy stock and has never been traders favourite. In fact, on the fundamental side, one needs to get more clarity as what is going to be the impact on the company’s cash flows post the new CERC decision. My sense is, the coming one or two quarters obviously would definitely be reflective of that but more importantly there does not seem to be any basic incremental EPS trigger at least for the near term so I would preferably avoid this. I would definitely look at something like Tata Power where despite the fact that some amount of equity dilution may happen, they have been talking about a QIP. Incrementally over the next five years up to FY19 they have got a clear kind of positioning now so Tata Power could definitely give a much better performance compared to an NTPC.