Goldman Sachs, in its latest research report on Reliance Power, recommends "Sell" ratings, citing expensive valuations and possible delays in the completion of projects.
According to the report, the stock is currently trading at FY11 E P/B of 3.4X, which is atleast 20% of its peers. Even if new benefits of court ruling is considered, the stock is still trading at least 30% premium to its valuations.
The report also mentions about the delay in projects as ongoing dispute between RNRL and RIL is going murkier with each passing day.
On the basis of these parameters, Goldman Sachs recommends "Sell" on Reliance Power.
According to the report, the stock is currently trading at FY11 E P/B of 3.4X, which is atleast 20% of its peers. Even if new benefits of court ruling is considered, the stock is still trading at least 30% premium to its valuations.
The report also mentions about the delay in projects as ongoing dispute between RNRL and RIL is going murkier with each passing day.
On the basis of these parameters, Goldman Sachs recommends "Sell" on Reliance Power.
0 comments:
Post a Comment