Reliance Power Share Jumps 20% in a Month – What Should Investors Do?
Reliance Power, a part of Anil Ambani’s ADAG group, has seen a sharp rise of nearly 20% in the last one month, outperforming major indices like Nifty 50 and Sensex. This jump has caught the attention of both existing investors and those looking for new opportunities.
Why is Reliance Power's Share Price Rising?
Experts say the rally is due to multiple reasons:
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Debt reduction: The company’s debt-to-equity ratio improved after selling Reliance Capital to IIHL.
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Profit boost: In Q2 FY25, it reported a net profit of ₹2,878 crore, mainly due to an exceptional gain from deconsolidating its subsidiary VIPL.
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Focus on green energy: The company is expanding into renewable projects, including a large solar and battery storage plant.
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Operational improvements: Its thermal power plants are performing among the best in India.
Should You Buy, Sell, or Hold?
Stock market analysts suggest:
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Current investors can hold the stock for short-term targets of ₹48 and ₹52.
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New investors with high-risk appetite can consider buying, but with a stop loss at ₹36.
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The stock has made a strong base at ₹36 and may face resistance at ₹44. A breakout could push the price to the next target levels.
Caution Ahead
While the company has improved financially, it still has ₹250 crore in non-convertible debentures and may issue new debt via FCCBs. Also, recent profits are mostly from exceptional income, not from core operations.
Reference from:-https://www.livemint.com/market/stock-market-news/reliance-power-share-price-anil-ambani-owned-adag-stock-jumps-20-in-one-month-buy-sell-or-hold-11744440763624.html