Power to companies to stay volatile: Sonam Udasi, IDBI Capital

In a chat with ET Now, Sonam Udasi, Head of Research, IDBI Capital, shares views on power companies.

ET Now: What is the call on PFC and REC?

Sonam Udasi: The way the noise on the policy front is emanating, it looks clear that they want to do something about the receivables and something about the overall power sector in general. So, that cannot be really bad news for power companies, but it is going to be very volatile. Our sense is that things should improve from a news point of view for these stocks specifically. It is likely to be volatile as days go by because nobody has now the wherewithal to give a big valuation to these sort of companies. There were days when these guys used to get a price to book value multiple of 2+ kind of number. Those days are slightly gone. So near to 1.5-1.6, people will again start to book profits.