Street goes long on PowerGrid, NTPC

Strong financials, benign interest rate cycle & lower volatility in stock prices

When it was ‘all fall down’ for most stocks during the note-ban period (November ‘16-January ‘17), NTPC and PowerGrid stood as exceptions with a positive bias. These stocks gained 12-16 per cent in these three months. Perhaps for this reason, most brokerages preferred to bet on PowerGrid and NTPC as their picks for 2017. 

Another reason could be strong revenue visibility these companies offer. Despite the challenging times for the power sector, financial results of NTPC (India’s largest power generator) and PowerGrid (the nation’s largest power transmission player) have either met or exceeded Street expectations consistently in the past four-five