According to Sudip Bandyopadhyay, Group Chairman of Inditrade Capital, power stocks like NTPC and Tata Power present a strong investment logic. NTPC, being the largest power utility in India, has successfully transitioned from traditional energy to green energy generation. The company has achieved excellent integration and consistent performance improvement. Bandyopadhyay recommends considering NTPC for long-term investment, citing the possibility of spin-offs and corporate restructuring that can unlock value.
Tata Power, too, has made significant progress in embracing green energy and moving towards new energy sources. The company has overcome past challenges and is increasingly focusing on renewable energy. Bandyopadhyay suggests considering Tata Power for a one-year plus hold.
Bandyopadhyay also discusses Bharat Forge as an attractive investment option. He emphasizes that Bharat Forge’s defence business is often overlooked despite its strong performance in other areas like US truck demand. With the growing excitement in the Indian defence sector and the government’s emphasis on Make in India, Bharat Forge is positioned well as a defence play. Bandyopadhyay advises investors to evaluate Bharat Forge based on its defence segment and recommends holding the stock for the long term.
Overall, Bandyopadhyay believes that power stocks like NTPC and Tata Power, along with Bharat Forge as a defence play, are solid investment choices with the potential for long-term gains.
