Reliance power has won back to back contracts for creating power plants in India. They have the largest portfolio for creating power plans in India.
The book value of stock is 54 and PE is 195 against industry average of 27 as given here. All its plant are going to become operational in or around 2012.
It is more of a sentimental stock right now a little over priced at current value of 194.
Considering its potential, I expect the EPS to move from current .42 to 18 atleast once its power plants are operational. Assuming a PE of 26, it should be quoting around 468 in 2012 or so.
It is a very long term buy. I would recommend a buy on every dips of reliance power. If there is a boost in budget about the power sector (which would be there as India needs power very dearly due to lot of deficits in power), this stock will shoot up.
Disclaimer: Do your own due diligence before buying any stocks.
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