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[hfe_template id='11223'] [ad_1] Synopsis A sector that continues to see a strong policy focus both at the central and state levels, and also an improvement in its operating matrix, is the power sector. However, given the diverse nature of companies which operate in the power sector, it would be worthwhile to make a distinction between segments. Where should you take higher exposure, and where lower? Transmission is literally a monopoly business. Once a transmission line is built, revenue is stable. Should it be given more valuation than a coal power producer? At a time when there are so many moving parts to the global equation it would be better to focus on domestic plays. Sectors where what China and the US do, and what Trump says, don't matter. One condition, though. That the sector should, on a stand-alone basis, be doing well. Power as a sector has seen a major improvement in its operating matrix. This has led to an across-the-board re-rating. But a deeper look ...

[hfe_template id='11223'] [ad_1] Synopsis When the market hits a bearish phase, there are some sectors that tend to do better than others. Reason: The income stream of these sectors is stable and even in an economic slowdown demand for their products is not impacted. Hence the street tends to gravitate to these sectors. One such sector is power. Now consider another aspect. With hands on heart, answer these questions. Before the announcement of its IPO, did you know that NTPC had a subsidiary called NTPC Green Energy? Or have any idea what business it did? Or, more importantly, that its IPO would get listed at more than Rs. 1 lakh crore market capitalisation? If the answers are yes, then you know all about the power sector and we need to go no further. But if not, read on, and ignore the narratives suggested by the Nifty and Sensex As the market corrects, investors are faced with the age-old dilemma. Hold or sell or, indeed, buy? In the case of some sectors, the dilemma ...

[hfe_template id='11223'] [ad_1] Synopsis Among sectors that have been re-rated both in terms of business and on the street is the power sector. Of course, the occasional lack of price action or an overall bearish phase may make you wonder why you are holding these stocks. Yes, some of them are expensive and may even see a price correction. But it is a sector where things took a turn for the better some 12-14 years back – and the runway for growth is long. More importantly, promoters now seem to realize that, more than valuations, what they need to do is make their businesses strong so that they play a part in the energy transition wave that has just started. Power is one sector where the operating matrix of each player is quite different. A power generator, a power distributor, a transformer maker, or a power grid manager – each has its own challenges/advantages. What binds them together is the policy-level pushes that have brought the sector out of the dumps it was in ...