We are at the euphoria stage of the market. You and I have discussed this in out convos. Recent price action is completely out of whack with fundamentals.
What is the future, I am no guru to predict.
As regards to REC/ IREDA / PFC, look at loan growth and NPA to determine relative valuation for long term.
for eg: PFC has recently loaned the Shapoorji group some 15k crores for repaying old loans. Does it make sense. Is it part of their mandate.
Similarly, REC has started funding infra projects. Do they have clear understanding of the relative pitfalls. Infra projects in India are almost always delayed. Have they priced the risk.
I hold REC bought at current prices having but am doing so taking into account 15-20% dips and long term holding. If your outlook is shorter, maybe time is to take out profits.
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