New Delhi: The shares of Reliance Power are witnessing a rally of almost 9 percent, as per the data obtained from BSE. The stock has seen a growth of over 76 percent in the previous trading month and 173 percent over the last year. The stock has been recording a surge in the background of a combination of factors like several projects in the order book and the positive quarterly results of the company.
The company has signed a power purchase agreement (PPA) through its subsidiary Reliance NU Suntech for 25 years with SECI (Solar Energy Corporation of India) for the establishment of a greenfield project of 930 MW of solar capacity integrated with 465 MW/1,860 MWh of BESS. The estimated cost of the project is around Rs 10000 crore.
Additionally, the company’s other subsidiary, Reliance NU Energies, has signed a new project with SJVN to develop a 350 MW solar-BESS project. The company is also having contract with Bhutan-based Druk holding and Investment Ltd. to co-develop the country’s largest solar power project
The company has shown stronger January-March quarter results. The company boasted a consolidated profit of Rs 126 crore, reflecting a positive upturn in the company’s trajectory. The company posted a loss of Rs 397 crore in the same quarter of last year. The change in financial health is attributed to the new equity infusion from the promoter totaling 348 crore via preferential share allotments and from significant public investment.
The company was in a legal tussle with SECI over the debarment order passed by the SECI last year. The Delhi High Court has passed an order providing interim relief to the Reliance against the debarment, potentially allowing it to resume its participation in a new tenders
Reliance Power share price
At the time of writing the article, the shares are trading at around Rs 70.40 per equity — up 8.94 percent. The company has a market cap of over Rs 26,000 crore. The PE ratio of the shares is 9. The shares of Reliance Power have been showing resilience for quite some time. The shares have given a return of over 14 percent in just a week while performing at a bullish rate of over 64 percent in just a month. The streak continues with significant returns of around 167 percent for a year. With the stock gaining over 2600 percent in five years, Reliance Power is eyeing steady growth in the upcoming future.
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Reliance Power’s stock price has surged over 8%, following a 76% increase last month and a remarkable 173% rise over the past year. This growth is driven by new solar energy projects, including the two biggest solar energy projects. Stronger Q1 results coupled with a favorable court ruling against a debarment order further boosted investor confidence. Markets Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
