Stock market analyst VK Sharma has maintained ‘Buy’ rating on Reliance Power to achieve an intraday target of Rs 200.

According to Mr. Sharma, interested traders can buy the stock around Rs 191.
 
The support level for the scrip is at Rs 187.15.

If the stock market remains on positive track, the stock pricing becomes more attractive, and reach above Rs 202.

The company’s shares on Thursday (June 11) closed at Rs 835.05 on BSE. Current EPS & P/E ratio stood at 1.04 and 190.29 respectively. The share price has seen a 52-week high of Rs 195 and a low of Rs 82 on BSE.

Mr. Sharma also said that the stock will hit a new 52-week high in today’s session. So, traders must buy the stock to reap good returns.

Reliance Power (R-Power), on May 29, said that it is in talks with Australian mining companies BHP Billiton and Rio Tinto for setting up a coal mining JV company, which will develop the mines allocated to the company and supply coal to its power facilities.

The company plans to make investment of around Rs 50 billion in developing coal mines.

The companies that have shown interest in the deal included Vale of Brazil, Peabody Energy of the US, Xstrata and Anglo American of the UK.

It is discovered that that RPower is expected to earn over Rs 40 billion by the next 10 years by selling carbon credits from its forthcoming Sasan power project in Madhya Pradesh.

It is understood that the company is likely to obtain the UN-managed Clean Development Mechanism executive board’s approval for 37.5 million units of carbon credits within the existing month (June 2009).

During the same month, RPower said that it will invest more than Rs 120 billion for executing 2,520-MW hydro power projects in Arunachal Pradesh.

The projects will be commissioned in the next Five Year Plan (2012-17).

Moreover, the company entered into a deal with the Arunachal Pradesh administration for making 2,520 MW of hydro power projects in the state.

The company has signed agreement with the state government for developing four hydro power projects, 1,200 MW Kalai-II, 420 MW Amulin, 500 MW Emini and 400 MW Mihundon.