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Reliance Power is back in the spotlight. Once written off by many investors, the stock has staged a dramatic comeback, riding on the back of green energy deals and a rare profit. But is this a turning point or just another rally waiting to fizzle out?
What’s driving the stock?
- Big clean energy win: In May, Reliance Power secured a Rs 2,000 crore solar project in Bhutan, triggering an 18 per cent single-day jump.
- Surprise profit: After several weak quarters, the company posted a net profit of Rs 2,948 crore in Q4 FY25, driven largely by exceptional gains and tax adjustments.
- Sector sentiment: Renewable and power stocks have been in favour lately, and Reliance Power is riding the wave.
About Reliance Power
Part of the Anil Ambani-led Reliance ADA Group, Reliance Power owns and operates power generation projects across coal, gas, hydro and solar. Its flagship asset is the Sasan Ultra Mega Power Project (3,960 MW). The company also has smaller thermal and solar plants and some coal mining assets, though many projects have seen delays or setbacks over the years.
Key numbers
| Metric | Value |
|---|---|
| Market cap | Rs 30,212 crore |
| P/E ratio | 10.2 |
| P/B ratio | 1.8 |
| Book value | Rs 40.5 |
| EPS (TTM) | - Rs 0.4 |
| ROE | - 19.4 per cent |
| ROCE | 1.3 per cent |
Value Research Online ratings
As per Value Research Online, Reliance Power scores low on fundamentals but high on price momentum.
- Quality: 1/10
- Growth: 5/10
- Valuation: 2/10
- Momentum: 10/10
- Overall rating: 2/5
The bottom line
Reliance Power’s run-up may have caught many off guard, but the fundamentals haven’t changed overnight. For value-conscious investors, this stock still carries baggage. The excitement is real, but so is the risk.
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Disclaimer: This is not a stock recommendation. This story was created with the assistance of artificial intelligence and is intended for informational purposes only. Please take it with a pinch of salt and do your own research or consult a financial advisor before making investment decisions.
Disclaimer: This content is for information only and should not be considered investment advice or a recommendation.
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