Reliance Power is a power generation company that generates, operates, constructs, and maintains power projects in Indian and internationally including Coal Energy, Gas, Hydro, and Solar-based energy projects.
The company was incorporated on 17 January 1995 as Bawana Power Private Limited and changed its name to Reliance Delhi Power Private Limited in February 1995. Its name was changed to Reliance Energy Generation Limited in March 2004, and finally to Reliance Power Limited in July 2007. (Wikipedia)
Reliance Power has over 6000 MW of operation power generation assets. The company operates in various sectors including telecommunication, Media, Entertainment, Financial Services, infrastructure, and of course Energy sector.
Fundamentals of Reliance Power
| Market Cap | Rs.17,518 Cr |
| Stock P/E | -9.97 |
| ROCE | 1.43% |
| Industry P/E | 26.49 |
| Book Value | Rs28.90 |
| ROE | -17.6% |
| EPS | -4.66 |
| Dividend Yield | 0.00% |
| Face Value | Rs.10 |
Reliance Power Financials (last 3 Years)
| 2022 | 2023 | 2024 | |
|---|---|---|---|
| Revenue | 7,678 | 7,854 | 8,260 |
| Profit | -923 | -343 | -2,242 |
| Net Worth | 13,385 | 13,287 | 11,614 |
Reliance Power Ket Metrics
Reliance Power Compounded Sales Growth
| 10 Years | 4% |
| 5 Years | -1% |
| 3 Years | 0% |
Reliance Power Compounded Profit Growth
| 10 Years | – |
| 5 Years | – |
| 3 Years | – |
Reliance Power Stock Price CAGR
| 10 Years | -5% |
| 5 Years | 87% |
| 3 Years | 39% |
| 1 Year | 145% |
Reliance Power Return on Equity
| 10 Years | 0% |
| 5 Years | -7% |
| 3 Years | -12% |
| Last Year | -18% |
Why Reliance Power is in Focus
As of now, the company is totally debt-free, thanks to superior management by
Anil Ambani’s Son and as a result, the share price of Reliance Power skyrocketed where in the last month the stock has given a whooping 46% return as the stock hit the upper circuit day by day.
On September 17, 2024, Reliance Power declared debt settlement as guarantor on behalf of VIPL, saying, “Reliance Power Limited (Reliance Power) today announced that the entire obligations of the Company as a Guarantor on behalf of Vidarbha Industries Power Limited (VIPL) stand fully settled resulting in release and discharge of Corporate Guarantee, Undertakings and all obligations and claims thereunder about the outstanding debt of VIPL amounting to ₹3872.04 Crores. (source – mint).
However, after the news of the debt settlement the bulls of D-Street takes Reliance Power on the Radar, and the effect can be seen in the share price of the company where in the last 1 year the company has given a whooping 146% return till date.
Sumeet Bagadia, Executive Director at Choice Broking, said, “Reliance Power share price today is in a long-term uptrend, which is currently trading at Rs. 44.35 and he sees a long-term uptrend potential in the stocks as it forms a higher high and higher low pattern which signals a strong bullish momentum.
Also, the increase in the Volume also suggests a positive bias and investors should keep an eye on buying the stocks in the dip with a target of Rs. 58 to 62 in the short term or by the end of the year (source – Mint).
Reliance Power Stock Price Targets for 2025, 2026, 2027, 2028, 2029, 2030
Let’s take a look at the price targets of this stock in these coming years based on Current Metrics and most importantly the past performance of the Company and the Stock Price.
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Reliance Power Price Target for 2025
As of now, the reliance power is in the long-term uptrend after making a higher high and higher low which indicates a strong buying momentum which suggests a price target of Rs. 58 to 60 by the end of this year.
Reliance Power Price Target for 2026
We will also see a long-term rise in the stock price of the stock – hence we can expect a significant rise in the share price of Reliance Power by 2026 which would be near Rs.80.
Reliance Power Price Target for 2027
For 2027, in my opinion, there might be a consolidation in the stock after a long-term rise in the share price so we expect its share price would be trading within a range between Rs. 80 to Rs. 100
Reliance Power Price Target for 2028
For 2028, the share price would likely start rising again as the demand for solar and green energy rises which would ultimately benefit Reliance Power and hence the stock price so that we can see its stock price towards Rs.150
Reliance Power Price Target for 2029
For 2029, the stock price will likely rise above Rs. 200 and will possibly touch Rs. 250
Reliance Power Price Target for 2030
As of the calculation, we can expect that the price is near the IPO price or might stay lower around Rs.350
| Year | Reliance Power Price Target |
|---|---|
| 2025 | Rs.58 |
| 2026 | Rs.90 |
| 2027 | Rs.150 |
| 2028 | Rs.200 |
| 2029 | Rs. 250 – Rs.300 |
| 2030 | Rs.350 – Rs. 400 (near its IPO) |
Conclusion
Reliance Power is a growth stock as of the current trend where it’s making higher highs and higher lows and the volume justifies its growth where the company has lowered its debt and become debt free all thanks to its management and the experts believe that the stock will continue to grow further with a price target of Rs. 58 to 62 by the end of this year.
