Search
+
    Invest with Confidence. Lead with Insights.
    • Drench in the knowledge with exclusive insights, ePaper & smart market tools with ETPrime.

    Another round of re-rating? 5 power sector stocks with upside potential of up to 18%

    Synopsis

    There are sectors which are discovered on the street, then thrown in dumps and then rediscovered. Probably, in the last three years, the street is more in a mood to rediscover the sectors. On top of the rediscovery mission is the power sector. This rediscovery has happened after a gap of close to 15 years and probably companies and their promoters have learned many lessons. The players who are able to survive tend to get more attention because they have learnt the art of surviving a tough phase which is one most important feature for long-term survival. While phase one of the re-rating has taken place, the question is that as the sector continues to show improvement in performance, will there be another round of re-rating. As far as the basic demand matrix is concerned, power is a sector where demand will always be higher than supply.

    It is very typical of equity markets, not only in India but globally, all of sudden a sector gets discovered, where the street assumes that there is possibility of exceptional growth. There is a mad rush to get exposure to that sector, taking valuations through the roof. Then after the rush, there is sudden cooling off, because things don't pan out in the sector itself and there is no sudden growth. Or in some cases, the growth, but not the pace
    • FONT SIZE
    • SAVE
    • PRINT
    • COMMENT
    ET

    Uh-oh! This is an exclusive story available for selected readers only.

    Worry not. You’re just a step away.

    Why ?

    • Exclusive Economic Times Stories, Editorials & Expert opinion across 20+ sectors

    • Stock analysis. Market Research. Industry Trends on 4000+ Stocks

    • Clean experience with
      Minimal Ads
    • Comment & Engage with ET Prime community
    • Exclusive invites to Virtual Events with Industry Leaders
    • A trusted team of Journalists & Analysts who can best filter signal from noise
    • ​Get 1 Year Complimentary Subscription of TOI+ worth Rs.799/-​

    The Economic Times