Shares of Reliance Power Ltd surged 7.48% on Wednesday, touching ₹76.49—levels unseen since August 2014, nearly 11 years ago. This sharp upswing primarily reflects the company’s turnaround, strategic wins in renewables, and robust quarterly performance backed by strong investor sentiment.
A Meteoric Rally: From ₹1.10 to ₹76 in Five Years
Reliance Power has delivered a jaw-dropping return of almost 7,000% since bottoming out at ₹1.10 in March 2020, with a staggering 2,900% gain over five years. Over the past month, the stock ballooned by around 70–85%, adding to last month’s 50% surge trend.
What’s Driving the Surge?
1. Stellar Q4 FY25 Financials
- Net profit turned positive at ₹126 crore, reversing a ₹398 crore loss a year earlier.
- EBITDA and margins showed remarkable improvement with ₹590 crore and ~30% margin in Q4—up sharply from just 9% a year ago.
- FY25 net profit totaled ₹2,948 crore, after posting a ₹2,068 crore loss in FY24.
2. Major Renewable Energy Order Wins
- Subsidiary Reliance NU Suntech secured a 25‑year PPA with SECI for a massive 930 MW solar + 465 MW/1,860 MWh battery energy storage project, India’s largest single-location solar+BESS initiative.
- Another deal involves a 350 MW solar + 175 MW/700 MWh BESS project from SJVN, and a term sheet with Bhutan’s Druk Holdings for a 50:50 joint solar venture.
3. Strengthened Capital Structure
- Raised ₹348 crore via preferential allotment to Reliance Infrastructure and Basera Home Finance.
- Debt-to-equity improved drastically from 1.61:1 in FY24 to 0.88:1 in FY25 through debt repayment.
4. Legal & Strategic Developments
- Delhi High Court interim relief enabled the company to proceed with new tender participation by nullifying a SECI debarment.
- Equity infusion and regulatory clearances strengthened overall investor confidence.
Market & Technical Momentum
- 52-week high: ₹76.49 — the strongest since summer 2014.
- Trading volume: A massive 82 million shares changed hands on June 10, valuing ₹544 crore in trades .
- Momentum indicators:
- RSI is over 77, suggesting an overbought but resolutely bullish swing .
- MACD remains positive, guaranteeing upward technical bias .
What Analysts Are Saying
- Bonanza Securities sees the improved balance sheet, high-margin operations, and stabilised debt as pillars of long-term strength.
- Lakshmishree Investments flagged a rebound above ₹65.20 as bullish, anticipating the next resistance near ₹75–₹76 before pushing towards new highs.
- Anand Rathi confirms strong technical support in the ₹65–₹67 band, with ₹75 marking the next tactical resistance.
Sector & Corporate Context
Anil Ambani group companies—Reliance Power and Reliance Infrastructure—are rallying across the board, with both up more than 22% in June, and annual returns of 173% and 141% respectively. Their resurgence is attracting renewed investor interest in ADAG entities.
Risks to Be Mindful Of
- Valuation stretch beyond ₹76 could prompt short-term profit-booking.
- Project execution and PPA timelines are key; any delay or tariff renegotiation might affect earnings.
- Commodity and interest rate fluctuations could erode margin projections.
Final Take
Reliance Power’s epic rise from penny stock to ₹76 exemplifies a textbook corporate revival—underpinned by financial rehabilitation, strategic renewables expansion, strong order book, and renewed investor confidence. While technical levels are extended, the combination of structural growth and improved fundamentals indicate deeper upside for long-term and event-driven investors alike.
Summary Table
| Parameter | Data / Insight |
|---|---|
| Intraday gain | 7.48% to ₹76.49 |
| 1-month increase | ~70–85% |
| 5-year return | ~2,900% |
| FY25 Net Profit | ₹126 crore (Q4); ₹2,948 crore (FY) |
| Major Orders | 930 MW solar + BESS; 350 MW solar + BESS |
| Debt-to-Equity Ratio | 0.88:1 |
| Trading Volume | ~82 million shares |
| RSI / MACD | RSI ~77 (overbought), MACD bullish |
| Investor Confidence | High |
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Please consult a certified financial advisor before making any investment decisions in the stock market.
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