Stay invested in power companies; expect to see good returns in 2-3 years: Neeraj Deewan

In a chat with ET Now, Neeraj Deewan, Director, Quantum Securities shares his views on power generation companies.

ET Now: What is your view on the power generation companies?

Neeraj Deewan: They have gone through a very bad phase over the last four-five years. There have been all sorts of problems like project delays because of interest rates going up, etc.

The consolidation and the bad phase is now getting over. After a phase of consolidation, we saw euphoria in these stocks five to seven years back, and then, we saw the consolidation phase. Going ahead in the next one to one-and-a-half years from now, the problems will get sorted though it would not be immediately resolved.

There has been an intent to sort the problems because the kind of mandate the government has got they would be in a position to sort the problems. One needs to stay invested in power companies. Good returns can come in these companies in the next two to three years.