Reliance Power share price surged over 10 per cent to hit its 52-week high in intraday trade on the BSE on Tuesday, June 10, in a lacklustre market. Reliance Power share price opened at ₹65.56 against its previous close of ₹64.55 and jumped 10.53 per cent to its 52-week high of ₹71.35.
At this price, the stock has surged nearly 68 per cent this year so far and 174 per cent over the last year. On a monthly scale, the stock has surged over 20 per cent in June so far after a 45 per cent jump in May.
The company’s strong Q4 results and positive growth outlook have contributed to the traction seen in this power stock lately.
Reliance Power reported a consolidated profit of ₹125.57 crore for Q4FY25 against a loss of ₹397.56 crore in Q4FY24.
Consolidated revenue from operations slipped nearly 1 per cent year-on-year to ₹1,978.01 crore from ₹1,996.65 crore in Q4FY24.
Meanwhile, Reliance Power’s subsidiary, Reliance NU Energies Private Limited, on May 28 received the letter of award (LOA) from SJVN Limited, a Navratna Central Public Sector Enterprise, for a 350 MW inter-state transmission system (ISTS)-connected solar power project coupled with a 175 MW/700 MWh battery energy storage system (BESS).
Reliance Power share price: Is there more steam left?
Experts appear positive about the stock for the long term due to the company’s improved balance sheet and profitability.
“The company’s improved balance sheet and profitability signal stronger cash flows and reduced financial risk, key ingredients for stock price appreciation,” said Rajesh Sinha, Senior Research Analyst at Bonanza.
Sinha pointed out that over the past 12 months, the company completed debt servicing of ₹5,338 crore, reducing its debt-to-equity ratio from 1.61:1 in FY24 to 0.88:1 in FY25, greatly improving its financial stability.
“Reliance Power’s financial turnaround with profit recovery and significant debt reduction, combined with its aggressive expansion in renewable energy projects backed by long-term PPAs, aligns perfectly with India’s clean energy transition and government policies,” Sinha noted.
Sinha highlighted that strong market sentiment, technical momentum, and a diversified energy portfolio further enhance the company’s growth prospects.
“Looking at its debt reduction, aggressive expansion in renewable energy projects, and diversified energy portfolio, we advised investors to invest in Reliance Power for a long-term investment view and use any dip to add to the stock,” said Sinha.
Technical experts also appear positive about the stock.
According to Anshul Jain, Head of Research at Lakshmishree Investments, Reliance Power, after breaking out above ₹53, has successfully tested its initial target of ₹69 and is now heading towards the next upside objective of ₹75.
Volumes remain supportive, reinforcing the sustainability of the bullish price action. Momentum is steadily gaining traction, and the continuation of this uptrend appears highly likely.
“Traders can ride the trend with trailing stops, while any minor dips towards ₹65–67 could offer fresh entry opportunities for the target of ₹75,” said Jain.
According to Jigar S. Patel, Senior Manager of Equity Research at Anand Rathi Share and Stock Brokers, the stock has recently surpassed the key resistance level of ₹65.20, which was the January 2018 high.
“The monthly RSI holding above 70 indicates strong bullish momentum. Looking ahead, the next major resistance is seen near ₹75, where a pullback may occur, while support is expected around the ₹65 level,” said Patel.
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Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions, as market conditions can change rapidly, and circumstances may vary.
