Indiabulls Power- BUY

Listed at NSE & BSE
Scrip code:  IBPOW
Sector: Power Generation/Distribution
CMP(Rs.): 12.95

Company Info:

1. The company is into Power, Financial services, Real estate & Securities services.
2. AMRAVATI THERMAL POWER PROJECT (1350 MW) is being setup by Indiabulls Power Ltd. (IPL.) at Nandgaonpeth, Amravati district, Maharashtra
• The primary fuel for the Project is Coal for which coal linkage has been granted and letters of assurance from South Eastern Coalfields Ltd. (SECL), Western Coalfields Ltd. (WCL) and Mahanadi Coalfields Ltd. (MCL) have been issued.
3. Nasik Thermal Power Project (1350 MW) is being setup by Indiabulls Realtech Ltd. - a subsidiary of Indiabulls Power Ltd. at Sinnar, Nasik district, Maharashtra. The project site is easily accessible from Nasik, Pune & Mumbai.
• The primary fuel for the Project is Coal for which coal linkage has been granted and letters of assurance from South Eastern Coalfields Ltd. (SECL), Western Coalfields Ltd. (WCL) and Mahanadi Coalfields Ltd. (MCL) have been issued.
4. The company also deals in Power trading business on the energy exchanges.

Unique Selling Proposition:

• Renewed focus of Government on power sector to meet the demand.
• Restructuring of Coal supply to power producers on the cards
• Reportedly, government is also looking into easing the Financing of power sectors.
• Since the company is a new entrant in this business, has a lower baggage to carry from financial perspective.
• Company seems to be looking to capture a big chunk of Renewable energy business.
• Expect favourable announcements in coming General budget
• Thia stock is happening and is HIGH RISK-HIGH GAIN kind.

Financials:

Current financials of the company are not attractive

But future is surely green for this company.

Target:

Again I repeat. This is a HIGH RISK-HIGH GAIN stock.

Investors with high risk appetite only, should consider this stock.

It has potential to reach Rs.40 in a years time (by Jun-15).