R Power
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Prashant Shivashimpi
Jun 19, 2008, 10:46:28 AM6/19/08
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Hi Guys,
Below is an article from Money Control about R Power ups and down.
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| Dear market man In your earlier posts on Rel Power u talked about that there r no fundamental in rel power, its all hype and good will which is cashed etc For your kind information IPO subscription/stock market is mostly based on good will, image. if u or me bring an ipo will u think even our friend will trust us and give money, no at all because we don't have credential, past history so good will, which all reliance have. Second, now a days, u raised the issue of Book value of Rel power. See below Scrip Book value Price (P/B ratio) MTNL 185 104 (0.56x) Allahabad Bank 117 90 (0.77x) HPCL 283 247 (0.87x) BPCL 284 358 (1.26x) IOCL 292 411 (1.4x) Ansal prop 82 162 (1.97) Videocon Ind 243 350 (1.44x) Mosar Bear 125 192 (1.53x) If book value is ur criteria, than all the investor should invest above stocks. And no investor should invest in below stocks : Scrip Book value Price (P/B ratio) IFCI 0.21 63 (300x) DLF 3.83 649 (167x) NESTLE 43 1840 (42x) UNITECH 7.1 286 (40x) HUL 6.5 243 (37x) Third, u compare Rel power, no one business house with NTPC, a govt sector company. I am not saying that NTPC is bad. Have a look on following data (comparison between private and government companies in same field) Banking Sector Scrip P/E ratio Book Value Price (P/B ratio) SBI PE 16 495 1700 (3.4x) Bank of India 9 109 358 (3.2x) PNB 7 321 569 (1.7x) Bank of baroda 8 236 295 (1.2x) Canara Bank 6 198 236 (1.2x) ICICI bank 25 218 941 (4.3x) HDFC bank 33 181 1502 (8.3x) Axis Bank 30 94 901 (9.6x) Kotk mahindra bank 90 48 769 (16x) Centurian bank 63 7 50 (7.1x) See average PE ratio of government banks are 9x, that of private bank are 48x Average PB ratio of government bank are 2.14, where as that of private banks are 9 Telecommunication Scrip P/E ratio Book Value Price (P/B ratio) Bharti Airtel 26 60 851 (14.2x) Rel comm. 48 99 600 (6x) Idea 31 8 110 (13.7x) Tata Comm 47.5 223 511 (2.3x) MTNL 12.5 185 104 (0.56x) PE of govt. tele comm. Company is 12.5 and that of private sector tele comm. Companies is 38 PB of MTNL is 0.56 and that of private sector tele comm. is. 9 Company which till date are not completed, but goodwill of name is driving : Scrip P/E ratio Book Value Price (P/B ratio) RPL 0 30 187 (6.2x) Rel power 0 61 417 (6.8x) Finally, Rel power with NTPC (govt company) Scrip P/E ratio Book Value Price (P/B ratio) NTPC 20 59 191 (3.2x) Rel power 0 61 417 (6.8x) If PB of NTPC(govt) is 3.2 than 6.8 PB of Rel power(private) is justified as per above comparison in banking and telecommunication sector. And last most important that before announcement of bonus, rel power was traded at average 350. Lets we take this 350 as reference price(although 30 days moving average is 384 from moneycontrol site). Due to post bonus revised capital structure, it adjusted price would be 350x 226/239.7=330 So even if one buy today at 417 and post bonus cost(not price) will be 260. This calculation is based on price in worst market in feb before bonus announcement. Definitely now market is much better . Its my personal perception that the as sensex will cross 20000, u will see rel power trading above 700 (as it was supposed to be before listing). And one more good news that Rel power is ranked 1597 among Forbes Global 2000 Companies in year 2008. At least everyone can trust on ranking of Forbes as Forbs consider all the market parameters to rank a company. So dear market man and all small investor, our ultimate aim is wealth creation, and reliance has been creating wealth for investor. So what is problem to create wealth whether it is by their name(in market man's words hype, goodwill etc) or by fundamentally(PE, PB ratio). Reliance power is justified on both parameters. Regards | ||||
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| what do you think of rel power now @180.... we all thought it will not come below 400.... it came.. then 300 and now 200 breached wat\\'s next... no body knows | ||||||
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Posted by:  glory072007 on (19-Jun-08 10:37 ) |
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| Price : BSE: Rs 184.00 ( -1.39 % ), NSE: Rs. 184.15 ( -1.18 % ) | ||
| R Power is for long term investors. So,if you are a long term investor, please keep your holding in R Power. If you can afford, please buy as much shares of this company as you can and relax. You will get a very big reward after 2-3 years. Best of Luck! | ||
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Posted by:  rakeshsaini31 on (19-Jun-08 10:44 ) |
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| Price : BSE: Rs 184.25 ( -1.26 % ), NSE: Rs. 184.50 ( -0.99 % ) | ||
| yes vkk, we all didn't think it will go below 300. but now what we can do except keeping patience. now i think,(also MMB post)it has reached its bottom. | ||
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Posted by:  Guest on (19-Jun-08 11:13 ) |
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| Price : BSE: Rs 185.00 ( -0.86 % ), NSE: Rs. 185.00 ( -0.72 % ) | ||
| It will touch Rs. 300 at any time. It is the best time to buy Reliance Power. | ||
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Posted by: bulldog on (19-Jun-08 16:52 ) |
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| Price : BSE: Rs 180.70 ( -3.16 % ), NSE: Rs. 180.90 ( -2.92 % ) | ||
Hello ... Are you a marketing guy for reliance power. Reliance power is an absolute trash stock. We are talking about power business & not telecom or banking in whcih you can aggresively sell your product. Power as a business has a fixed rate of return & there is no point in giving R Power a higher multiple on the contrary it must be given lower multiples due to huge risk associated with execution of power projects. To me R power actual value should be its book value i,e 60 rupees. Its a stock full of hype & hot air. | ||
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Posted by:  sanjay38000 on (19-Jun-08 18:33 ) |
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| Price : BSE: Rs 180.70 ( -3.16 % ), NSE: Rs. 180.90 ( -2.92 % ) | ||
| it has zero value....bekar company.....anil ambani had cheated us all. | ||
Thanks and Best Regards,
Prashant.
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