News Brief | January 2016
Deutsche Bank says Indian power sector will see earnings recovery
Deutsche Bank has raised the earnings estimate for Power Grid Corporation, Tata Power and NHPC as prospects of the power sector improve, but has reduced the estimate for Jaiprakash Power Ventures.
In a report, the Bank said that hurdles in the power sector are easing and will result in strong earnings recovery, albeit delayed. The valuations of these utilities, which is at a 30-40% discount to historical mean, could revert sooner, it added. Deutsche Bank´s top picks from the sector are - NTPC, JSW Energy, Power Grid Corporation and CESC.