Reliance Power Ltd stock was listed in the stock market in March 2008. The stock prices of the stock have not sustained and started falling from their opening price and are currently more than 90% below their all-time high. In the company, there are some signs of improvements as a result we are sharing Reliance Power’s share price target for 2024, 2025, and 2026 for analysis purposes.
Over the last few years, the earnings of the company have improved and most probably in the upcoming few years, the Reliance Power Ltd company will become a profitable company. Once the company becomes profitable we can expect good returns from the company.
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About Reliance Power
Reliance Power is an Ambani group of companies that was founded in 1995. The company is involved in the business of power generation and distribution sector. It was listed on the stock market in February 2008.
In the Power Generation and Distribution sector, Reliance Power is involved in both types of renewable and non-renewable power generation businesses. As we know, we have a limited supply of fossil fuels and most of the power is generated from this source. That is why companies are also working on renewable energy sources and generating power from them.
Currently, Reliance Power generates power from the following renewable and non-renewable sources-
- Gas Based Projects
- Coal Based Projects
- Solar Power Projects
- Wind Power Projects
- Hydroelectricity Projects
Gas Based Projects (Non-renewable)
In the Gas based projects, power or electricity is generated using gas. Below are some stats on Reliance Power’s gas-based projects and their location, capacity, fuel sources, etc.
Samalkot Power Project
- Location: Andhra Pradesh
- Capacity: 2,400 MW
- Fuel Source: Gas
- Status: Under Construction
Reliance Bangladesh LNG & Power Ltd. & Reliance Bangladesh LNG Terminal Ltd.
- Location: Bangladesh
- Capacity: 3,000 MW
- Fuel Source: LNG
- Status: Under – Construction
Coal Based Projects (Non-renewable)
Reliance Power has many coal-based plants at several locations in India and all the plants are operational. Below are some details of these coal-based plants-
Sasan Ultra Mega Power Project
- Location: Madhya Pradesh
- Capacity: 3,960 MW
- Fuel Source: Coal
- Status: Operational
Rosa Phase 1 and Phase 2
- Location: Uttar Pradesh
- Capacity: 600 MW
- Fuel Source: Coal
- Status: Operational
Butibori Power Project
- Location: Maharashtra
- Capacity: 600 MW
- Fuel Source: Coal
- Status: Operational
Solar Power Projects (Renewable)
Currently, Reliance Power Ltd has only 2 solar power plants. Both plants details are as follows-
Rajasthan Sun Technique Energy Pvt. Ltd
- Location: Rajasthan
- Capacity: 125 MW
- Type: Solar CSP
- Status: Operational
Dhursar Solar Power Pvt. Ltd.
- Location: Rajasthan
- Capacity: 40 MW
- Type: Solar PV
- Status: Operational
Wind Power Projects (Renewable)
Reliance Power Ltd has only 1 Wind Power plant named Vashpet Wind in Maharashtra with a capacity of 45 MW and its status is Operational.
Hydroelectric Power Projects (Renewable)
The company has a lot of hydroelectric power projects at different locations in India. Some project details we shared below and you can check the complete lists on their official website.
Tato II
- Location: Arunachal Pradesh
- Capacity: 700 MW
- Status: Under-development
Siyom
- Location: Arunachal Pradesh
- Capacity: 1,000 MW
- Status: Under-development
Urthing Sobla
- Location: Uttarakhand
- Capacity: 400 MW
- Status: Under-development
Kalai II
- Location: Arunachal Pradesh
- Capacity: 1,200 MW
- Status: Under-development
Amulin
- Location: Arunachal Pradesh
- Capacity: 420 MW
- Status: Under-development
Emini
- Location: Arunachal Pradesh
- Capacity: 500 MW
- Status: Under-development
and many more hydro projects…
Reliance Power’s Scrip Info
| NSE | RPOWER |
| BSE | 532939 |
| ISIN | INE614G01033 |
| SECTOR | POWER GENERATION & DISTRIBUTION |
Company Analysis
Below you’ll find Reliance Power Limited’s company information like financials, fundamentals, and shareholding patterns. This information plays an important role in identifying good companies for investing.
Note: The shared information is not enough for a complete analysis of any company or stock. Kindly cross-check this information with any screener or broker.
Note: All the values are in (₹) Rupees Crore.
| Quarter | Net Profit & Loss |
|---|---|
| Jun 2023 | -₹296 |
| Sep 2023 | -₹238 |
| Dec 2023 | -₹1,137 |
| Mar 2024 | -₹398 |
| Jun 2024 | -₹98 |
| Year | Net Profit & Loss |
|---|---|
| Mar 2020 | -₹4,271 |
| Mar 2021 | ₹454 |
| Mar 2022 | -₹915 |
| Mar 2023 | -₹403 |
| Mar 2024 | -₹2,068 |
Note: It is the company’s financial performance data, typically released every three months (quarterly) or once a year (annually).
| Market Cap | ₹14,529Cr | ROE | -17.81% |
| P/E Ratio (TTM) | -7.76 | EPS (TTM) | -4.66% |
| P/B Ratio | 1.25 | Div. Yield | 0.00% |
| Industry PE | 27.05 | Book Value | 28.91 |
| Debt to Equity | 1.62 | Face Value | 10 |
| Held By | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 |
|---|---|---|---|---|
| FIIs | 7.66% | 8.37% | 13.01% | 12.71% |
| DIIs | 5.16% | 5.19% | 4.94% | 3.06% |
| Public | 62.67% | 61.95% | 58.81% | 60.99% |
| Promoters | 24.50% | 24.50% | 23.24% | 23.24% |
| Other Holders | 0.01% | 0.01% | 0.00% | 0.00% |
Key Insights
- 0 promoter pledge.
- Low debt on the Reliance Power.
- Promoters decreasing their shareholding.
- The PE Ratio of the stock is low (PE<=10).
- The earnings of the company are not increasing.
- The profit margins of Reliance Power are not stable.
- FIIs are increasing their shareholding rapidly over the quarters.
- Reliance Power has been a loss-making company for several years.
Quarterly Results – June 2024
The net loss of Reliance Power Ltd is reducing over the quarters. In the June 2024 quarter, the net loss of the company was Rs. 98 Crore is the lowest in the last 4 quarters.
But in the company’s sales, there are no major improvements. The sales are almost flat over the 4 to 5 quarters.
Reliance Power Share Price Target
As of August 2024, the financials and fundamentals of the Reliance Power company are very poor. A lot of power projects of the company are still under construction and once the projects are completed then we may see some positive things in the company’s financials and fundamentals. For now, Reliance share price target prediction for 2024, 2025, and 2026 can be slightly tough.
In the Power Generation and Distribution sector, there are dozens of good and profitable companies with a bright future like Suzlon, Tata Power, Adani Power, and many more. In a few words, if you are new in the stock market you should avoid Reliance Power stock until the company shows good profits in a row.
| Year | Minimum Target | Maximum Target |
|---|---|---|
| 2024 | ₹35 | ₹40 |
| 2025 | ₹45 | ₹50 |
| 2026 | ₹50 | ₹55 |
Disclaimer: We are not SEBI registered, this post is only for educational purposes. We give the stock price targets based on analysts’ research, news, price action, etc. Please do research or talk to your financial advisor before making any decision.
Reliance Power Share Price Target 2024
For the Reliance Power stock 20% to 30% move in a month is very normal so, you should invest in the stock with a proper loss otherwise you may face a huge loss in the stock quickly. Most of the time, the stock moves due to the news or events.
In the last 1 year, the stock gained up to 200% and as of 08 June 2024, it is trading about 30% down from its 52-week high.
As per price action, the stock looks slightly bullish but as per risk-reward, it is not good for now. If you still want to invest in the stock then you can go with a Stoploss of Rs. 30. It is a major support for the RPower stock, if it is broken it can fall more.
In 2024, Reliance Power’s share price target can go up to 10% to 12% (Rs. 25 to Rs. 40) as it is looking slightly bullish. We strongly recommend you invest or trade in the stock with less quantity.
Reliance Power Share Price Target 2025 and 2026
From the medium-term to the long-term, the Reliance Power stock is not good as per the current financials and fundamentals of the company. For the last few years, the company has a loss-making, fundamentals are weak, promoters are decreasing their holdings, and many more poor things.
The good thing is that there are a lot of projects under development in the Reliance Power company. Once the projects are completed in the future we may see some good things in the company like improving earnings, fundamentals, sales, and more.
In a few words, there are high risks in investing in the stock and there is nothing that can help to predict the Reliance Power share price target for the medium term to long-term.
FAQs
There are majorly two major types of investors i.e. high-risk investors and low-risk investors. High-risk investors usually invest in penny stocks to get huge returns but for low-risk investors, it is not recommended because there is very little chance of generating profits from these types of stock.
Currently, there are very high risk in investing in the Reliance Power stock as it is a loss-making company, financially weak, and many projects are under development.
As of 22 August 2024, Reliance Power is a penny stock, the stock is trading at Rs. 35.
If you are in the stock market then you already know that there are very high risks in investing in penny stock. We recommend you trade or invest in the stock with proper analysis.
Reliance Power looks slightly bullish for now, there is some chance that the stock can go up in the upcoming months but it can also fall.
Above we shared its target price for 2024 with a stoploss. If you trade with a stop loss you may reduce your risk.
Final Words
Over the years, the Reliance Power stock has continuously made huge losses and it looks like it may take 2 to 3 years to generate profit consistently. Currently, there are a lot of projects that are under development which is a good thing. Once the projects are completed and the company starts making profits then we may see a good Reliance Power share price target for 2024, 2025, and 2026.
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