Updated 5 June 2025 at 11:13 IST
Reliance Power, led by Anil Ambani, is once again in the spotlight with its stock trading close to its 52-week high. As of today, the stock is priced at Rs 61.94, just below its yearly high of Rs 63.39. It has risen by over 1.6% today, showing strong investor confidence.
In the past one year, Reliance Power's stock has delivered massive returns. It has gained around 162% in a year, and 2,441% in the past 5 years. Even in the short term, the stock is showing strong momentum — up 18% in a week, 38% in two weeks, and 51% over the last month.
A major reason behind this rally is the company’s focus on reducing its debt. Its subsidiary, Sasan Power Limited, made a significant repayment of $150 million (about Rs 1,285 crore) to IIFCL (UK) at the end of 2024.
Over the last year, Reliance Power has repaid a total of Rs 5,338 crore. As a result, its debt-to-equity ratio improved sharply from 1.61 in FY24 to 0.88 in FY25. This shows the company is becoming more financially stable.
Another big step for the company is its move into clean energy. Its subsidiary, Reliance NU Energies, recently secured a major renewable project.
This includes a 350 MW solar plant along with a 175 MW / 700 MWh Battery Energy Storage System (BESS). This project places Reliance Power among key players in India’s renewable energy space.
To support its growth plans, Reliance Power has also raised new funds. In September 2024, it announced plans to raise long-term capital through Qualified Institutional Placements (QIPs) and other routes.
By December 2024, the company successfully raised Rs 1,525 crore by issuing equity-linked warrants. This move helped strengthen its balance sheet and fuel its future investments.
Reliance Power is making headlines not just for its sharp stock rally, but also for the strength of its underlying fundamentals. According to Trendlyne, the company currently holds high scores across key investment indicators—Durability, Valuation, and Momentum—making it a stock worth watching.
Reliance Power has a Durability Score of 75, which indicates high financial strength. A score above 55 typically reflects stable revenues, solid cash flows, and manageable debt levels. This means the company has demonstrated consistent long-term performance and resilience.
The improvement in its debt-to-equity ratio from 1.61 in FY24 to 0.88 in FY25, driven by debt repayments of over Rs 5,300 crore, supports this strong durability profile.
With a Valuation Score of 72, the stock appears to be affordably priced. According to Trendlyne, a high valuation score suggests the stock is trading at attractive levels based on P/E, P/BV, and current market price.
Notably, Reliance Power has spent only 12.7% of the time below its current P/E ratio of 8.7, placing it in the P/E Strong Buy Zone. This means that historically, the stock rarely trades at such valuations—suggesting there may still be room for price appreciation.
The Momentum Score of 72 indicates that the stock is technically bullish. A high score here means that the stock is showing strong buying interest and performing well across multiple technical indicators compared to the broader market.
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Published 5 June 2025 at 11:10 IST