Power Trading Corp invests in power projects. Despite losing market share during the last few years, the company has recorded a growth in the trading business. In the first two months of March 2011 quarter, the company has already traded 3,500 million units and is expected to exceed 5,000 million units as against 3,200 million units a year ago. However, its subsidiary Power Financial Services, which got listed last month, has pulled down valuations. PFS is in the business of power financing through debt and equity and PTC holds 60% in it. Though the trading business will continue to perform well, long-term investments of PFS will reduce the return on capital. Though PTC does not appear to be the best bet in power, investors can stay invested. At price to earning of 21, PTC remains a safe bet for the long term.
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