Bhel, PFC, REC can trade much higher; ICICI, Axis can give 20-25% return over next year: Chakri Lokapriya

economictimes.indiatimes.com:

Chakri Lokapriya, CIO & MD, TCG AMC, says “just like Bhel is going through a new lease of life, so is PFC and REC. I remember participating as an anchor investor in IPOs of these companies and they were priced at one-and-a-half times book then. Today, they trade at less than 0.7 times book, half the valuation. Now, with the growth rates exceeding what it did in the past, it is just a matter of time before the stock even trades closer to its book value and higher, which means there is still a lot more upside from current levels.”

We were looking at the streak of order wins from a company like Bhel and that has been pretty phenomenal since the start of the year. Just recently, they bagged a fairly sizable order in their kitty. What would be your outlook given that for the longest period of time, this was one of the slowest moving stocks? What is your view on Bhel?
Bhel has got a new lease of life with a renewed interest in power and India has always been a power-deficient country, but now it is a combination of both thermal and green energy.

Now, after these order wins for Bhel, their earnings are going to go up significantly. It is going to go up like five or six times. So this kind of an earnings revival and that too large projects, the EPC projects that BHEL needs to execute over several years, provides order book and earnings visibility.