However, the weaker closing of Rs 235.85 is lower than the adjusted price and the stock could perhaps continue to be under pressure for some time , given hat it appears to have been derated. Nonetheless, the cost for investors has come down because of the bonus.
The power sector in India is expected to see big investments in the power sector and offers potential for growth. Reliance Power has plans to set about over 28,000 mw of capacity including some ultra mega power plants.
Analysts tracking the sector believe that given the long gestation period for power plants and also the uncertainties regarding the availability of fuel, particularly natural gas, the fair value for the stock could be somewhere between Rs 200-250 per share.
