Zee Business Managing Editor Anil Singhvi said investors should buy into Gujarat Industrial Power Corporation Limited (GIPCL). He said that 3 things are moving in markets, they are power stocks, PSU stocks and Gujarat companies. GIPCL is a Gujarat based PSU Company. Prime Minister Modi has clearly indicated that the Government has no Business to be in Business. After this statement, Gujarat PSU stocks have started making strong moves.

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Singhvi said Market Participants are thinking that the Government will start exiting stake first from Gujarat based companies and so they have started moving. PSU’s of Gujarat State are extremely strong unlike Centre Government.

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Gujarat Gas, GSFC, GNFC, GSPL, Gujarat Alkalies, GMDC and many more are extremely strong companies with excellent fundamentals. Power sector will see good moves in coming days right from Power Grid Corporation of India, NTPC, REC, PFC and others at the bottom of the sector.

Singhvi said GIPCL can see targets of Rs 115 – Rs 125 in long term. Investors should hold this for the long term to achieve the target. The stock is currently trading at attractive valuations. The stock is trading at a P/E multiple of 6-7, this is one of the cheapest stocks in the power sector.  They have invested Rs 250 cr in strong companies like Gujarat Gas and Gujarat Alkalies. Also they have investment in some Subsidiaries as well. Gujarat Industrial Power Corporation share price today is Rs 90, up Rs 5 or 6.5%.The market cap of the company is Rs 1365 cr.

Singhvi said that the stock could see good action going forward as well. There are many triggers indicating that the stock should do well. The target on the stock is Rs 95 – Rs 100 in short term and the stop loss is Rs 81.