Reliance Power - Excellent operating result; maintain Buy - Emkay

Reliance Power's (RPWR) 3Q13 APAT of Rs2.6bn was better than our estimates due to higher availability (103% vs. 93% estimated) - Rosa PAT was Rs2b in 3Q vs. 1.4b in 2Q13.

Sasan UMPP remains on track to commission in FY13 itself. Hinting at start of construction in Sasan II/Chitrangi in next few months. Clarity likely post 4Q on Tilaiya and Butibori.

Triggers ahead - 1) Sasan 1st unit COD in Feb/Mar-13, 2) construction at Chitrangi/ Sasan-II, 3) MERC approval to Butibori PPA with Reliance Infrastructure, 4) Tilaiya land acquisition & 5) Chhatrasal stage II forest clearance.

We maintain our earning estimates for FY13 and FY14. With the stock trading at 1.2x FY15 book; we maintain Buy with a longer term view & a PT of Rs140/sh. Earnings momentum to start from FY15. Risk: no value from excess coal assets.

Source : Equity Bulls

Keywords