CESC Ltd is the recommended stock from the power sector: Convexity Solutions

Sudip Bandyopadhyay, Managing Director & CEO, Convexity Solutions in a chat with ET Now talks about the power sector stocks.

What do you think would you want to do in a market like this?

The first stock which I like to recommend is in the power sector. It’s a company CESC Ltd. I think the company has been doing pretty well in the recent past though its not trading at a multiple which its peers are trading its currently trading at a multiple of around 10 whereas I think most of the power sector companies are trading at a multiple of around 20.

Based on the current valuations and the current performance of the company and considering that most of their plants in West Bengal which is a hugely power deficit state I am very clear that this stock should move up soon and within a period of 6 months I am definitely looking at a price range of around 450 from where it is currently at around 370-360 levels.