Buyback plan stimulates Reliance Energy(indian stock market)
Reliance Energy jumped 3.20% to Rs 1674.70 at 10:05 IST on BSE after the firm said its board would meet on 5 March 2008 to consider buyback of equity shares of the company.
The company made the announcement before market hours on Tuesday, 26 February 2008.
Meanwhile, BSE Sensex was up 110.80 points, or 0.63%, to 17764.99, as Asian stocks were mostly in green following overnight rally in US stocks. US stocks rose sharply on Monday, 25 February 2008, on signs the two largest bond insurers would stabilize, bringing a wave of relief to a market dogged by concerns of further bank write-downs.
On BSE, 1.28 lakh shares of the scrip were traded. The stock had an average daily volume of 10.99 lakh shares on BSE in past one quarter.
The scrip had touched a high of Rs 1691.55 and a low of Rs 1660 so far during the day. The stock had hit a 52-week high of Rs 2631.70 on 10 January 2008 and a 52-week low of Rs 448.20 on 5 March 2007.
The scrip had underperformed the market in the one month to 25 February 2008, skidding 20.07% as against the Sensex's 3.87% decline. It had, however, outperformed the market in the past three months, falling 7.56% against the Sensex's 7.72% slide.
India's second largest power utility by revenue has an equity capital of Rs 236.53 crore. Face value per share is Rs 10.
At the current price of Rs 1674.70, the scrip trades at a PE multiple of 32.83, based on Q3 December 2007 annualised EPS of Rs 51.
The net profit of Reliance Energy rose 50% to Rs 301.60 crore on 1.5% decline in sales to Rs 1505.49 crore in Q3 December 2007 over Q3 December 2006.
Reliance Energy is engaged in generating, transmitting and distributing electricity. It also provides electrical contracting, engineering, procurement and construction contracts and computer services.