Rpower: At 2 yr support level...if held could be very bullish !!Rpower CMP 36.95
The stock is near its 2 year support or should I say near all time low levels...
In the current set up
- Momentum might come on sustaining above 38.5 - 40 levels
- for target of 46 / 58 initially and above that it could scale up to 85 odd levels in the longer term
- pattern gets invalidated if stock closes below 33 odd levels levels
- however would be skeptical if it closes below 34.60
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Some Key Fundamental parameters
Book Value: Rs 76.17 per share (Shares available at 50% discount to its Book Value)
EPS (Earnings Per Share): 3.55
PE RATIO : 10.35 (Comparing PE Ratio with Tata Power 24.22 and Nifty Price to Earning ratio 25.96, Rpower looks grossly under valued )
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Let me go by Disclaimer
- Key Fundamental parameters are not my own calculations but as per publicly available information on leading financial websites...
- Also understand there is lot more to Fundamental Analysis than Key parameters mentioned here
- the fact that Nifty is at all time highs and Rpower near all time lows also reflect that the fundamentals of the Company / Sector as a whole has been on a weaker side so far..Reasons could be debt problems / Government policies for Power sector etc to name a few...
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That being said our verdict is stock looks good from longer term perspective with better risk::reward ratio
Take care & happy investing...!!!
