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Showing posts with the label Reliance Energy Ltd

Stock Analysis

Negative sentiments pull down power stocks (The Hindu Business Line 17th Jan 2008) Power sector stocks are trading lower due to over all negative sentiments in the markets, say analysts. The sector is at its lowest point since the beginning of the year. The BSE Power index was down 3.67 per cent today, with 12 stocks declining and only two stocks advancing. Just a week ago this sector had touched its highest ever figure of 4929.34 and today it is down 7.39 per cent from that figure. The sector closed the day at 4462.33, which is 169.94 points down from Tuesday’s close. Reliance Energy, which was down 4.14 per cent, NTPC (5.55 per cent) and BHEL (4.42 per cent), were among the top losers of the day. The other power sector stocks that took a beating today were: Tata Power (5.63 per cent), GVK Power and Infrastructure Ltd (2.22 per cent) and GMR Infrastructure Ltd (1.36 per cent). More Reliance Ind, Reliance Energy recover on fund buying (The Hindu Business Line 17th Jan 2008)Reliance Ind...

Reliance Entergy Ltd (REL) Downgraded

Morgan Stanley downgrades REL to underweight (Source : CNBC-TV18, Moneycontrol.com 15th Jan 2008)Morgan Stanley has downgraded REL to underweight. They have kept a price target of about Rs 2,008, which is 20% lower than its current levels. The main reason for downgrading the price is the valuation of Reliance Power. Their 12-month forward value for Reliance Power is coming to around USD 11.85 billion and hence Reliance Energy’s 50% stake in Reliance Power comes to around Rs 1,002 per share. Also they believe that Reliance Energy stock is currently discounting the value of Reliance Power, which is around USD 23-25 billion based on the issue price. Now at the higher end of the IPO price band, which is Rs 450, Reliance Power is valued at 81 times FY12 and about 62 times FY13 expected earnings. As per Morgan Stanley, they have stated in their report that they would like to remain cautious about the risks from a significant ramp-up in capacities, ambiguity on gas supplies and the long gesta...