The stock market can feel like a rollercoaster sometimes, right? One day, you’re riding high on gains, and the next, you’re clinging on during a dip. But amid all that volatility, Reliance Power share price has been climbing—fast. Over the past month, this Anil Ambani-owned stock from the ADAG group jumped a whopping 20%, even as broader markets showed only modest growth. Now, the question buzzing around investors is: Should you buy, sell, or hold?
Let’s dive deep into what’s really happening with Reliance share price, why it’s spiking, and whether there’s more juice left in this rally.
The Recent Rally: What’s Fueling Reliance Power’s Momentum?
Let’s start with the numbers. In just 30 days, Reliance Power share price leaped from ₹34.65 to ₹40 apiece. That’s a solid 20% jump. To put that in perspective, the Nifty 50 index only rose 1.6%, and Sensex grew by 1.52%. Even the mid- and small-cap indexes didn’t come close to this performance.
So, what’s pushing this stock up?
The Comeback Kid: From ₹1 to ₹40
Here’s a blast from the past—back in March 2020, RPower share price had crashed to a jaw-dropping Re 1 per share. Yep, that’s not a typo. Now, it’s trading around ₹40. Sure, it’s a far cry from its all-time high of ₹375, but it’s still a massive turnaround story.
This resurgence has caught the attention of market watchers, especially since Reliance Power was once written off due to its heavy debt and stalled projects.
The Debt Drama: Cleaning House
One of the biggest reasons Reliance Power share struggled was its enormous debt. The company borrowed heavily to build power plants, but delays, governance issues, and coal supply problems turned those dreams into nightmares.
But now? Things are turning around.
With the sale of Reliance Capital to IndusInd International Holdings (IIHL), the company’s debt-to-equity ratio has dropped significantly—from 1.61 to 0.86. That’s huge.
They’re not out of the woods yet—there’s still ₹250 crore in Non-Convertible Debentures (NCDs)—but they’ve cleared their bank debts. The company’s interest coverage ratio and Debt Service Coverage Ratio have also improved, which is a sign of better financial health.
Riding on One-Off Profits: Is It Sustainable?
In Q2FY25, Reliance Power posted a net profit of ₹2,878 crore. Sounds impressive, right? But hold on.
That number was boosted by a ₹3,000 crore one-time gain from removing its subsidiary, Vidarbha Industries Power Limited (VIPL), from its books. So, in reality, the core business hasn’t turned profitable yet.
In Q3FY25, the net profit was just ₹42 crore—again, mainly due to “other income.” So, while the top line looks good, the company still isn’t firing on all cylinders from an operational standpoint.
Clean Energy Push: A New Chapter?
Here’s where it gets interesting. Reliance Power is finally shifting focus towards green energy. Its subsidiary just bagged one of Asia’s largest solar and battery storage projects. That’s a big deal, and it could mark the company’s evolution from thermal power to renewable energy.
They’re also planning green energy investments in Andhra Pradesh. This strategic pivot could help Reliance Power stay relevant in a future where coal is no longer king.
Technical Talk: What Do the Charts Say?
If you’re the kind who loves technical indicators, here’s the scoop.
According to Mahesh M Ojha, AVP of Research at Hensex Securities, Reliance Power share price has formed a strong base around ₹36. On the upside, there’s a resistance at ₹44. If it breaks past that level convincingly, targets of ₹48 and ₹52 are on the cards.
So, traders with a high-risk appetite can jump in for short-term gains, but with a strict stop loss at ₹36.
What Experts Say: Buy, Sell, or Hold?
Let’s break it down:
If you’re already holding Reliance Power shares, analysts suggest you should continue to hold. The stock has positive momentum and the near-term outlook is bullish.
If you’re planning to buy, it might be wise to wait for a dip or a confirmed breakout above ₹44. Short-term targets are ₹48–₹52.
If you’re thinking of booking profits, it depends on your investment horizon. Long-term investors might want to wait for the company’s core operations to show consistent profits.
Still Carrying Debt: Not All That Glitters is Gold
Let’s be real—this isn’t a squeaky-clean comeback. While it’s true that Reliance Power has reduced a lot of its debt, it’s not entirely debt-free. Plus, it’s planning to issue Foreign Currency Convertible Bonds (FCCBs), which could add more debt down the line.
That’s not necessarily bad if managed well, but it’s definitely something to keep an eye on.
Operationally Sound: A Rare Positive
Here’s a silver lining. Operationally, Reliance Power’s thermal plants are among the top-performing ones in the country. That means the engine is running efficiently, even if the profits haven’t caught up yet.
Combine that with the clean energy transition, and you’ve got a company that’s trying to reinvent itself.
Reliance Power’s Big Bet on the Future
With all this in mind, it’s clear Reliance Power is betting big on the future. It wants to shed the baggage of the past and emerge as a leaner, greener powerhouse.
The clean energy drive, improved debt ratios, and one-off profits have all contributed to the rise in Reliance share price. But whether that trend continues depends on execution.
Investor Sentiment: More Positive Than Ever
Market sentiment toward RPower share price is slowly shifting. Earlier, this was a stock investors avoided like a bad habit. But now? It’s gaining back trust.
And that trust is reflected in volumes, price action, and positive recommendations from brokers and analysts.
Conclusion
Reliance share price has certainly surprised many with its comeback. From a penny stock to one with serious upside potential, the turnaround is real—but it’s still in progress.
If you’re a risk-taker with a short-term view, this might be a great opportunity. But if you’re a long-term investor, you’ll want to watch closely for real growth in operations—not just paper profits.
The story isn’t over yet, but it’s definitely one worth following.
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Final Thoughts
Stock markets love a good comeback, and Reliance Power is scripting one. But like any dramatic twist, there’s more beneath the surface. The company has cleaned up a lot but still has a long way to go before it becomes a reliable, blue-chip energy stock again.
So keep your eyes on the fundamentals, stay updated, and invest wisely.
