You can share Reliance Power! Know what the experts are giving target

The shares of Anil Ambani’s company Reliance Power have shown a great rise of about 20 percent in the last one month. This performance is much better than major indices Nifty (1.60 per cent), Sensex (1.52 per cent) and bank Nifty (6.13 per cent). The company’s stock is currently trading at a level of Rs 40 in March 2020 to rise from a historic low of Rs 1.

Company’s financial condition

According to The Mint’s report, Reliance Power has taken several important steps to reduce its debt in recent times. The debt-to-equity ratio of the company has come down from 1.61 to 0.86. This improvement is mainly after selling IndusInd International Holdings of Reliance Capital. However, the company is still tied to non-convertible debentures (NCDs) of Rs 250 crore.

Quarterly results improve

In the quarter of September 2024, the company recorded a net profit of Rs 2,878 crore, including an extra -ordinary income of Rs 3,000 crore. This income was obtained from Vidarbha Industries Power Limited (VIPL) Deccolidation. In the December 2024 quarter, the company recorded a net profit of Rs 42 crore.

Future projects

The company has planned to invest in green energy projects. Under this, green energy projects will be started in Andhra Pradesh. The company’s subsidiary has achieved Asia’s largest solar and battery storage project.

How far can the price go

According to The Mint’s report, Mahesh M Ojha, AVP Research of Hensex Securities, says that the share of Reliance Power has made a strong base at the level of Rs 36. According to him, if the stock crosses the level of Rs 44, it can reach the level of Rs 48 and 52. However, investors should make positions in this stock with stop loss at Rs 36.

Disclaimer: (The information provided here is being given only for information. It is necessary to tell here that the investment in the market is subject to risks. Always consult expert before investing as an investor. Abplive.com is never advised to invest money here.)

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