India Equity Research Reports, IPO and Stock News Visit http://indiaer.blogspot.com/ for complete details �� ��
RELIANCE POWER
CMP (Rs.): 146.95 EPS (Rs.): 1.14 52 Week High : 192.80
Mcap (Rs. Cr.): 41669 Book Value(Rs.):51.60 52 Week Low : 133.00
Fundamental View :
The company is planning to take its renewable energy capacity to 1,000 MW in next
two-three years. Reliance Power has plans to set up 600 MW solar energy
(concentrated solar power – CSP and solar photovoltaic plants – SPV) based power
capacity in Rajasthan and 400 MW wind power plants in Gujarat and Karnataka. The
company proposes to fund these projects from its internal resources.
The $5 billion EXIM Bank deal taken with loans for $12 billion tied up with Chinese
banks take care of a huge chunk of the debt funding for the company's upcoming
power projects. While the company intends to execute 8,000 MW of gas-based and
900 MW alternative energy projects with funding from EXIM bank, funding from
Chinese banks take care of $10 billion equipment order for 30,000 MW.
Outlook: The new agreement with the banks could lower interest costs (by 300-350bps) for
the company in future.
Technical View:
In the daily charts the stock is below its 25 DMA which is at 154.06. The 14 day RSI is 36.75,
MACD on daily charts is -2.25. The stock is below its 200 DMA which is at 158.35.
Recommendations:
The stock trades at 8-month low levels and shows short-term downtrend. The reversal in
trend may happen only after the stock consolidates more at current levels and tries to break
out above 163 levels.
No comments:
Post a Comment