Prefer NTPC, Power Grid due to strong cash flows: Parag Thakkar

In an chat with ET Now, Parag Thakkar of HDFC Securities shares his view on the power sector.

ET Now: Is NTPC the best stock in the power space according to you? Are there any better power plays for retail investor?



Parag Thakkar: I would still go with stocks such as NTPC and Power Grid. It is because of the fact that there is inherent risks with private sector names. For example, the day CESC bid aggressively for the coal mine, its stock tumbled 8-9 per cent. Power is a space where a lot of uncertainty. How SEBs are going to be well-capitalised to pay dues on time, is critical. So, I would like to stay with safer names where predictability is very high and cash flows are very strong and NTPC and Power Grid both represent the same kind of opportunity.



ET Now: What about private power space? Anything that looks good to you?

Parag Thakkar: Private power space something like Torrent Power where cash flows are very strong. If some of their problems of getting gas get sorted out, I would like to go with Torrent Power. We do not cover the stock, but the cash flows are really good.