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Guj Ind Power may test Rs 140-160: Maheshwari
Ashish Maheshwari of India Capital Markets is of the view that Gujarat Industries Power may test Rs 140-160. Its right now having around 550 MW of power install capacity and in 2008, this capacity will be augmented to around 800 MW, and by 2011 expecting that their next round of expansion where they are adding around 500 MW more.
Maheshwari told CNBC-TV18, "Gujarat Industries Power has come down quite drastically. In the last 2 months, in fact in January, its quoting around Rs 180 and now its available for Rs 90, the fall is primarily due to all the stocks and power space, which were falling after the Reliance Power listing. But nothing wrong with the fundamentals of the company, its right now having around 550 MW of power install capacity and in 2008, this capacity will be augmented to around 800 MW, and by 2011 we are expecting that their next round of expansion where they are adding around 500 MW more."
He further added, "Next year I am expecting an EPS of around Rs 12 in this stock, so this stock is available at around 8 PE multiple compared to its listed peer like NTPC, Neyveli Lignite or GVK Power, its available at almost 50% to 75% discount so what we find is the stock has almost bottomed now and if the investor holds for a year, the stock may touch a Rs 140 to Rs 160 levels once again."
