Bonanza Portfolio Views on Midcap Power Stocks - CESC, JP Hydro

CESC

The company has an integrated utility business model with a presence in generation and distribution. It has installed capacity of 975 MW, has four generating units and caters to 2.1mn consumers in Kolkata. It is working on a 250-MW Budge Budge expansion. It is also getting into mining business and coal mines have been allocated to them. Spencer Retail is one of the subsidiaries of the company.

JAIPRAKASH HYDRO POWER

Jaiprakash Hydro-Power Ltd (JHPL), a part of the Jaypee Group, owns and operates the 300 MW Baspa-II Hydroelectric project in HP. It is also setting up joint venture for transmission of power. The current policy of the government is to enhance the share of hydropower in the current power generation basket. The EPS is Rs 3.20. The stock is attractively valued and is currently available below its issue price.