Cautious on power space; prefer NTPC: Sudip Bandyopadhyay

In a chat with ET Now, Sudip Bandyopadhyay, President, Destimoney Securities Pvt Ltd, shares his views on the mining and power spaces.

ET Now: What is your call on metals and power companies which have bagged mines, but at a much higher price?

Sudip Bandyopadhyay: Well, I am little sceptical about the entire bidding process. Some of the companies really went overboard and they have probably paid too high. We all know increasing the power tariff is not so easy — it takes ages before the power tariffs can be increased.

The incremental cost of coal will definitely these companies in the short. Having said this, may be in the long term these companies will benefit because they will have access to captive coal. But for now, I will be cautious. If I have to play power, as I have mentioned earlier, I will go and buy NTPC and hold on to it. .