RELIANCE POWER LTD
Sector: Power
Industry: Power Generation/Distribution
Reliance Power Current Price:
As of the market close on June 20, 2025, Reliance Power shares were trading between ₹63.48 and ₹63.55 on NSE and BSE.
Recent Performance:
Reliance Power stock has experienced significant gains recently, with a 1-year return of over 100% and a 5-year return of more than 1900%. It has also been hitting fresh 52-week highs.
Company News: Recent positive news includes:
A significant deal for a 350 MW solar power project with a Battery Energy Storage System from SJVN.
A commercial term sheet for a long-term power purchase agreement with Green Digital Pvt Ltd (Bhutanese government-owned).
A return to profitability in the January-March quarter of FY25, reporting a consolidated net profit of ₹126 crore.
Debt reduction efforts and increased promoter holdings.
Read more;
Best shares to buy
Analyst Views:
Some analysts suggest that while the stock has seen a massive run and is currently in overbought conditions, dips might be ideal for entry. Resistance levels are noted around ₹65 and ₹72, with strong support around ₹56-₹57. It is recommended to enter a position on a clear breakout above ₹65, accompanied by strong volume confirmation.
Important Considerations for Purchasing:
Market Volatility:
The stock has been volatile, as indicated by its Beta (over 2), meaning it tends to move more significantly than the overall market.
Profit Booking:
After a significant rally, there can be periods of profit booking, which might lead to temporary dips in price.
Risk:
While the company has shown positive developments, all stock market investments carry risks. It’s crucial to understand your risk tolerance.
Consult a Financial Advisor: Before making any investment decision, it is highly recommended to consult with a SEBI-certified financial advisor who can assess your financial situation and goals.
Do Your Research (DYOR):
Continuously monitor market news, company announcements, and financial reports to make informed decisions.
. Robust Financial Turnaround
Reliance Power has demonstrated a significant financial recovery. In Q4 FY25, the company reported a consolidated net profit of ₹126 crore, a notable improvement from a loss of ₹397.56 crore in the same quarter of the previous year. This turnaround is attributed to cost rationalization and equity infusion from promoters and public investors. economictimes.indiatimes.com+2samco.in+2economictimes.indiatimes.com+2economictimes.indiatimes.com
2. Strategic Expansion into Renewable Energy
The company is aggressively expanding its renewable energy portfolio. Notably, it secured a 930 MW solar project integrated with a 465 MW/1,860 MWh Battery Energy Storage System (BESS) from the Solar Energy Corporation of India (SECI). Additionally, a 350 MW solar project with a 175 MW/700 MWh BESS was awarded by SJVN. These projects position Reliance Power as a key player in India’s clean energy transition. indiatoday.in+3businesstoday.in+3reuters.com+3indiatoday.in+5businesstoday.in+5economictimes.indiatimes.com+5economictimes.indiatimes.com+4business-standard.com+4hindustantimes.com+4hellosafe.in
3. Successful Capital Infusion and Debt Reduction
Reliance Power raised ₹1,525 crore through a preferential issue, with significant investment from Reliance Infrastructure and other investors. The funds are allocated for business expansion and reducing debt, and enhancing the company’s financial stability. en.wikipedia.org+9businesstoday.in+9economictimes.indiatimes.com+9economictimes.indiatimes.com+4indiatoday.in+4economictimes.indiatimes.com+4
4. Positive Market Performance and Investor Confidence
The stock has exhibited strong performance, with a 76% gain over the past month and a 173% increase over the last year. This upward trajectory reflects growing investor confidence and the company’s strategic initiatives. economictimes.indiatimes.com
5. Favorable Technical Indicators
Technical analysis indicates bullish momentum. The stock is trading above key moving averages, and the Relative Strength Index (RSI) suggests strong buying interest. Analysts project potential price targets in the range of ₹65.53 to ₹67.84 in the coming week. stockpricearchive.com+1stockinvest.us+1economictimes.indiatimes.com
Conclusion:
Considering Reliance Power’s financial recovery, strategic investments in renewable energy, successful capital raising, strong market performance, and positive technical indicators, the stock presents a compelling investment opportunity. However, it’s advisable to consult with a financial advisor to align this investment with your individual risk tolerance and investment goals.