Positive on power space

In a chat with ET Now, Prateek Agarwal, Head Equities, Bharti AXA Invest Manager, talks about the outlook of power and media stocks.

Do you like the recently listed stocks in the power space?

We like the power space in the sense that it is probably a genuinely defensive space. We believe the shortages in the power scenario will remain for some more time. However, in certain parts of this space, there are valuations in fluffy zones. It gives a multiple of 10 odd times to high merchant rates which are not sustainable. So, there is some degree of fluffiness. However, in most of the companies that sell power on fixed return basis, the fluffiness is not there and the defensive character is definitely there.

Do you think an entry into the media space right now is a good idea?

We like the broadcasters, the second half should be better for them. The advertisement rates seem to be moving up. We do not like the other spaces. We do not like the exhibition business. I do not believe they have bargaining power on their side. The breakeven for them has probably moved up than down. The broadcaster media is the only thing that we like and there again we believe there is some degree of consolidation that has to take place before anybody starts to make very serious amount of money. Print is something that we are staying away from. Print is also not doing well.