Shashank Khade, VP, Portfolio Management Services at Kotak Securities is of the view that Rural Electrification Corporation, REC is relatively cheaper than Power Finance Corporation, PFC.

Khade told CNBC-TV18, “REC is relatively cheaper than Power Finance Corporation and because of the access to tax saving bonds is what REC quotes at a discount to PFC and that benefit may go out sometime. Though Power Finance and REC are in the same business however PFC is a nodal agency for the ultra mega power projects. So between the two if you look at – both do similar sort of business though Power Finance Corporation is far larger in terms role for Power Generation and REC is a cousin which is similar to what PFC does though it’s not a nodal agency for power generation.”

He further added, “IDFC is a much more diverse mix of financing, so it not only gives you power but also gives you financing for the other roads, ports and various other infrastructure facets. I think REC still remains the cheapest among the three. IDFC is now close to 2.5 times book; PFC is closer to 2 times book. REC is the cheapest out of the three. So, I think REC would be the one who could do a catch-up with the others though there are reasons why it quotes at a discount.”

source: Moneycontrol

Tags: Best Stocks, hot tips, kotak securities, PFC, Power finanace corporation, rec, s khade, shashank khade

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