Power stocks: NTPC is very different from SJVN; what you own matters. 6 power sector stocks with upside potential of up to 35%

Between 2005 and 2008, a number of new players entered the power sector. These included established industrial houses as well as new companies without any experience in the power sector. Anything to do with power got valuations unheard of in the sector. Remember the power company IPO that was subscribed within one minute of opening? Also remember the listing took place below the offer price and that stock has kept moving south ever since. After a gap of 16 years, one hears that the company is again raising money. So, before you take a decision to buy, sell, or hold a power sector stock, you need to understand why the sector went into the dumps, and what has led to a turnaround. In short, understand the history. It will ensure you don't hurry into an early exit just because the headlines are shouting about the sector’s under-performance.