Shares of Reliance Power surged nearly 12 per cent during the trading session on Tuesday to hit Rs 70-mark. The stock has scaled this mark for the first time in more than 10 years. It topped Rs 70 mark last time in November 2014, before turning into a penny stock in April 2019. The company’s strong Q4 results and positive growth outlook have contributed to the traction seen in this power stock lately. Experts appear positive about the stock for the long term due to the company's improved balance sheet and profitability.
For the March quarter of FY25, the company posted a consolidated net profit of ₹126 crore, a substantial turnaround from a net loss of ₹398 crore in the corresponding quarter last year. Adding to it, the power company raised ₹348 crore via preferential allotments, while it secured major solar- battery energy storage system (BESS) projects. Last month, the company’s subsidiary bagged a solar power project from SJVN Limited, a navratna central public sector enterprise. Reliance NU Energies, a subsidiary of the company, on May 28 received the letter of award (LOA) from SJVN for a 350 mega watt (MW) inter-state transmission system (ISTS)-connected solar power project coupled with a 175 MW/700 MWh BESS. Reliance Power, part of the Anil Ambani-led Reliance Group, has an operating portfolio of 5,305 megawatts, including 3,960 megawatts Sasan Power Limited, one of the leading integrated coal-based power plant.
Reliance Power last month partnered with Bhutan's Druk Holding and Investments (DHI) to develop Bhutan's largest solar power project in a ₹2,000 crore joint venture. This project, with a capacity of 500 MW, will be a 50:50 joint venture between Reliance Power and DHI. This is claimed to be the largest private sector foreign direct investment (FDI) in Bhutan’s solar energy sector to date. It rallied 45.5 per cent in May and has gained nearly 20 per cent in the past week. The stock is up 175 per cent in the last one year. Anil Ambani’s sons, Jai Anmol Ambani and Jai Anshul Ambani are behind his revival. Both sons stepped in business during challenging times and brought many changes to tackle the group’s financial health. Jai Anmol and Jai Anshul Ambani have focused on executing the Reliance Group’s Vision 2030 growth strategy. They implemented fundraising plans for core business like Reliance Infrastructure and Reliance Power. They raised Rs 4,500 crore through preferential equity issuance. Also secured Rs 7,100 crore via foreign currency convertible bonds in collaboration with Värde Partners. They also generated Rs 6,000 crore through qualified institutional placements (QIPs).These initiatives boosted investor confidence and resulted in a surge in the group’s stock prices.