Utilities in the power sector present an interesting investment case at this moment. Most power stocks have lost substantial ground in the past 12 months.
Despite rising interest rates, and high inflation, the banking sector is doing well, on the back of a recovering economy. The last couple of quarters indicate credit demand is picking up and Return on Assets (RoA) is more than acceptable at the moment. The PSU bank pack may be more interesting at the moment simply due to being valued at far lower multiples than the private banks.
While some equity analysts have raised target prices for public sector banks, others remain cautious
Valuations are much higher than the consensus earnings expectations warrant and also much too high in historical terms, says Devangshu Datta.
Devangshu Datta believes you should pick stocks trading at much lower valuations than the market average.
Ajit Mishra, vice president, Research, Religare Broking, answers your queries.
It could also clear stalled projects and review various subsidies on the energy, food and fertiliser fronts.
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