Reliance Power (RPower) – Progression & regression.

Q3FY10 results review - ICICI Securities

Q3FY10 was a mixed bag for RPower, with Rosa & Sasan projects making reasonable progress but uncertainty further amplifying with the Allahabad High Court cancelling land allotment for the Dadri project. The 300MW phase I Rosa project achieved commissioning in December '09 and is likely to commence commercial operations in Q4FY10. Sasan made headway by acquiring land (63% of total requirement) and commenced civil work (boundary wall). However, the Reliance Industries (RIL)-Reliance Natural Resources (RNRL) court case over gas remains unresolved, for which we expect Supreme Court decision in Q4FY10. RPower has spent Rs44.6bn (Rs28.8bn in Q2FY10) of the ~Rs115.6bn proceeds from its IPO. We maintain SELL and trim our target price to Rs140/share.

Source : Equity Bulls

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