anish

Originally Posted by anish

 Buy Reliance Infrastructure at the current price of around Rs.1067 and the one year target price is maintained at Rs.1331.

 The current level appears to be an attractive entry point with favorable risk – reward ratio to the buyer. The stock appeared to have bottomed out at the current level and buyers could expect around 24% return over one year term.

 It seems that the downside was mainly on concerns over some aggressive bids by the company such as Western Freeway Sea Link project and we feel that the concerns were overdone. Expert opinion is that it would be too early to term these projects ‘aggressive’ and rule out profitability of these projects.

 Financial closure of Sealink project, commencement of operations at the Delhi Metro and new projects in the pipeline are likely to be the positive catalysts.

 The company is expected to have higher realization from its Mumbai utility business (power supply) and this would bring in additional cash flow of Rs.1000 crore with PBT in the range of Rs.250 – 300 crore.