Which power share to buy?
Let us look at 4 of them:
Reliance Power ( P/e of 81, obviously not paying dividend) or Tata Power (p/e of 20 and dividend yield of 1.35), or Ntpc (p/e of 13 and div y of 2.62) or Nhpc (p/e of 8 and div yield of 3.31).
could not decide, but told myself when Reliance Power (will be) is available at the same p/e as Nhpc (which means a single digit price for Rel Power) it should be a good buy, what say?
Ps: I have a position in Tata power, Ntpc, and Nhpc.
Inspite of my anti psu stand I still have a exposure to Nhpc, Ntpc, Ongc, Coal India. Ntpc and Ongc are very old and my cost is close to the issue price. Nhpc my cost is current market price…Coal India avg cost price is 305… 🙂
No stake in Reliance adag.
Saurabh Aggarwal
Sir , including latest dividend , at current price NHPC yield is 7 % , please correct if wrong.
subra
not sure..pckd nos. from Money control – not a greatly accurate website…so u may be right
Bhushan
NHPC – CMP is 18 and div is Rs 0.7/share. So, yield comes to about 3.9%. It is trading at low PE because there is chance that some state boards may default on payment or force the MMS government to waive off the dues (actually they will ask MMS to inform these PSUs to write-off the dues). For same reason SJVN and power lenders like PFC and REC are trading at very low PEs. Yes, nobody trusts these PSUs.
Saurabh Aggarwal
Sorry sir , rechecked the figures , i am wrong , should have checked the figures properly.Sir would like to know why u are bullish on NHPC & not SJVN ?
achin
SJVN is another which will fall into same bucket as NHPC .. low pe + high dividend yield + PSU
subra
hey not BULLISH at all…just still browsing.
subra
and my overall exposure to infra (including power) is insignificant. Historically have some of these shares, that is all. Currently worried about the p/e of my Fmcg shares…
Jitu
Subra talking of Scrips????? Strange…..is doom’s day here?? Ohh I realized we’re already in 2012 – End of world…..
😀
subra
i talk, only i do not recommend on my blog. My recommendation cannot be generic – I am like an old fashioned doctor believe that medicine, financial planning, etc. are PERSONAL and cannot be generic.