Key Points
Now what is happening on the power stocks is we will, after a long lull, see a bit of a capex phase coming in particularly on the thermal side which would help boost some of the generation companies because you will have newer capex being announced...
What is your take on these power PSUs and not just financiers, I am talking about generation as well as financiers, Power Grid, NTPC of the world as well.. Mahantesh Sabarad: A lot is happening on the PSU stocks, not just power stocks and also in the railway stocks which are taking them beyond comfort valuation..
We have seen in the past how a company like a Power Grids tariffs are tightly controlled by the government and any adverse move related to that will quickly mean a collapse in the valuations, something similar is likely to happen especially given the fact that many of them have rallied quite a bit in terms of recent stock price rise..
Another development as far as the pharma companies are concerned is that the overall pricing pressure that was visible for many of them in the US market, particularly on the generic side, is gradually weaning off and there are new products that will start coming up in terms of launches for a lot of pharma companies...
So, a bit of good news could be expected ahead on the top line side where pricing pressure having gone, new products coming in, we should generally see better growth on the top line and thereby aiding a bit of margin expansion..
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