Another round of re-rating? 5 power sector stocks with upside potential of up to 18%
There are sectors which are discovered on the street, then thrown in dumps and then rediscovered. Probably, in the last three years, the street is more in a mood to rediscover the sectors. On top of the rediscovery mission is the power sector. This rediscovery has happened after a gap of close to 15 years and probably companies and their promoters have learned many lessons. The players who are able to survive tend to get more attention because they have learnt the art of surviving a tough phase which is one most important feature for long-term survival. While phase one of the re-rating has taken place, the question is that as the sector continues to show improvement in performance, will there be another round of re-rating. As far as the basic demand matrix is concerned, power is a sector where demand will always be higher than supply.