Posted on April 11, 2025, by Niftynews
The Reliance Power share price rose 1.72% in early trade on April 11, 2025, reaching ₹39.67 on the NSE. The stock opened strong at ₹40.50, briefly touched a day’s high of ₹40.65, and is currently consolidating around the ₹39.65–₹40.50 zone, signaling early signs of revival in the once-lagging power stock.
Despite weakness in broader markets—driven by global fears of fewer interest rate cuts by the US Federal Reserve—Reliance Power stood out, attracting selective buying from retail and institutional investors alike.
📊 Intraday Price Action – Snapshot
| Metric | Value |
|---|---|
| Opening Price | ₹40.50 |
| Day’s High | ₹40.65 |
| Day’s Low | ₹39.65 |
| Current Price (9:53 AM) | ₹39.67 |
| Previous Close | ₹39.00 |
The stock is currently consolidating near key psychological support levels, hinting at a potential breakout if volumes and sentiment remain positive.
🧾 Reliance Power Market Valuation Metrics
| Indicator | Value |
|---|---|
| Market Capitalization | ₹15,950 Crore |
| P/E Ratio | 6.62 (Low) |
| Dividend Yield | Nil |
| 52-Week High | ₹53.64 |
| 52-Week Low | ₹23.30 |
With a P/E ratio of just 6.62, the Reliance Power share price is appealing to value investors looking for energy plays with potential upside. The stock remains down over 25% from its 52-week high but has delivered strong returns from its lows, creating room for speculation and recovery.
⚡ What’s Fueling the Momentum in Reliance Power?
✅ Q3 Profit Surprise
Reliance Power recently reported a net profit of ₹41.95 crore for Q3 FY25, compared to a massive ₹1,136.75 crore loss during the same period last year. This turnaround was driven by lower expenses and a one-time gain from subsidiary deconsolidation.
✅ Fundraising Plan for Growth
The company has announced an ambitious ₹4,200 crore fundraising plan via foreign currency convertible bonds (FCCBs) and a ₹1,525 crore preferential share issue. These funds will be used for:
- Business expansion
- Reducing high-interest debt
- Strengthening long-term viability
✅ Energy Sector Optimism
India’s power sector is witnessing structural tailwinds, with strong demand, rising urbanization, and government-led capex in thermal and renewable energy infrastructure.
📈 What It Means for Investors
- Short-Term Traders: Monitor the ₹40.70–₹41.00 breakout zone for momentum plays.
- Long-Term Value Investors: Accumulate during dips given the low valuation, ongoing restructuring, and improving earnings outlook.
- Risk-Averse Players: Wait for clear technical confirmation above ₹41.50 to enter.
🛠 How To Take Action
- Watch quarterly earnings and debt repayment progress
- Track sectoral flows in power and infra-related stocks
- Pay attention to Reliance Group updates, as correlated movements may impact sentiment
👥 Who Will Be Affected?
- Retail Traders looking for low-priced momentum stocks with recovery potential
- Energy Sector Watchers following PSU and private power plays
- Reliance Group Trackers, especially those watching RInfra, RCap, and ADAG-linked names
🧠 Analyst Outlook: Will Momentum Last?
Analysts remain cautiously optimistic. While the recent profitability and fundraising plans are promising, legacy debt, low promoter holding, and lack of dividend payout remain concerns.
However, the Reliance Power share price has entered a critical phase. If execution of capital deployment and debt reduction begins to show visible impact in FY26, the stock may rerate from its current undervalued levels.
“Reliance Power’s low valuation and asset-heavy model make it a classic deep value bet. But only investors with a 12-18 month horizon should consider entry at current levels,” said an energy sector analyst at a leading brokerage.
📌 Final Word: Reliance Power Share Price Back on Investor Radar
The Reliance Power share price may not be the flashiest stock on the NSE, but it is slowly emerging as a turnaround candidate within the energy sector. Backed by improving earnings, renewed investor interest, and a commitment to reduce debt, the stock offers a high-risk, high-reward opportunity for selective investors.
For those tracking low-P/E, power-sector-focused recovery plays, Reliance Power is one to watch closely — especially as it approaches the ₹41–₹42 resistance zone in the coming sessions.
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