Maintain 'reduce' on Reliance Power - TP maintained at Rs.78 - Geojit BNP Paribas

- The target price is arrived at assuming that surplus coal from mines allocated to Sasan power project are sold to Coal India instead of fuelling planned 4000 MW Chitrangi power project.

- There have been reports that the Empowered Group of Ministers (EGOM) have decided to stick to their earlier decision to allow Reliance Power to use surplus coal to fuel Chitrangi power project. But, the issue is under consideration of the Supreme Court and the final decision is pending.

- If the Supreme Court verdict is in favor of the company, the planned Chitrangi project would also be factored in the valuation of the scrip and the target price would increase to Rs.124.

Source : Equity Bulls

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