Exit from Reliance Power at current levels, says VK Sharma, Head Private Broking & Wealth Management at HDFC Securities.
Sharma told CNBC-TV18, "Reliance Power continues to be the one which was there on the IPO day; you have to shun it completely, you can even sell what you have but since because the stock looks technically good you will keep a stop loss at Rs 70 and should that stop loss gets triggered then get out of the stock."
He further added, "It continues to be poor fundamental play although 900 mw of power has gone into stream but the risk which were there on the IPO time they continue to still remain in the company whether huge amount of execution risk. On the other hand you have a company like NTPC which is available at half the PE of what Reliance Power quotes at and with much more production on-stream in excess of 30,000 mw and Reliance is still 900 mw and double the PE. So huge amount of execution risk so it is by no means even it falls 50% you shouldn't be looking at this particular stock."
