RE:REL POWER
by Naresh Sharma on Jun 06, 2008 09:06 PM Permalink
There is no reason. why should u invest in this stock. It comes under "God knows what will happen to this company?"
RE:RE:REL POWER
by chaitanya kumar on Mar 01, 2008 11:14 AM Permalink
rel power is not a good scrip. see it is just a proposal that they are going to start a company. they have not started, nor run, nor finished their payback period, nor even they know from where they do get the raw materials or power for their company. and also 450 is too much, for a proposal. will you invest for a company named chaitanyapower (only a proposal, ofcourse its my company)? i have given you this example, for just making you see the reality. for any queries mail me to chaitanyakmr@rediffmail.com or call to 09948445993
RE:REL POWER
by on Mar 05, 2008 10:55 AM Permalink
My personal advice would be that you wait for some time as the market is highly fluctuating so you never know. One point to look out for though is whether you will be eligible for the bonus shares if you purchase RelPower now.
RE:REL POWER
by sachin sharma on Mar 24, 2008 11:12 PM Permalink
Though Reliance Power is not advised. Should you insist on the R-word. try buying it around 260 level. Thats the fair valued price, to which it is bound to fall to. Any hope of Reliance Power will come from Sasa power plant which is supposed to complete by Dec'09 only. Reliance Power is a complete project of Rs. 96000 Krore supposed to complete by Aug 2019. There are 11 Power Plants (its largest ever deviced plan for power generation). Anil Ambani has picked Rs. 11000 Krore from market by IPO. rest Rs 85000 Krore he has to get on debt, which will shoot his DER (debt-Equity-ratio) to 5 (that means he is worth Rs. 100 but he has taken loan worth Rs 500) Ideally speaking the DER of any company should be less than 1, means company can pay off its debt and return atleast purchase price to investors any time, which is not the case with Reliance Power. Its very scary situation for investor. Anil Ambani is selling just R-Brand that too he hasn't contributed anything to his father's name, he is just selling what Late D.B. Ambani created. At the other side of coin, if Anil is able to spin this gamble around, he will emerge as king of industry and share market (much greater than his father).
