Reliance Power share: Why is Reliance Power Stock Rising After Budget 2024? Anil Ambani-Owned Company in Focus

Ravi Singh

Reliance Power shares have risen from ₹26.94 to ₹34.54 each, providing approximately 30% returns to investors over five sessions following the Budget.

Stocks to Buy: Reliance Power shares have been on a strong upward trajectory following the presentation of Budget 2024. On July 23, 2024, Reliance Power’s share price closed at ₹26.94 on the NSE, and since then, it has consistently reached 52-week highs. Post-Budget 2024, the shares of Reliance Anil Dhirubhai Ambani Group (Reliance ADAG) have surged from ₹26.94 to ₹34.54, marking a nearly 30% increase over five consecutive sessions.

Stock market experts report that Reliance Power is now debt-free on a standalone basis, having cleared its ₹800 crore obligations. The company is poised to compete with other private sector power companies in FY25. The Budget 2024, which emphasizes growth in power and infrastructure, is expected to positively impact the company’s balance sheet in FY25, driving increased investor interest. However, experts note that while the company has shed its debt, it now faces significant challenges regarding its order book, which will become clearer in the upcoming quarters of the current fiscal year.

Triggers for Reliance Power Shares:

Avinash Gorakshkar, Head of Research at Profitmart Securities, highlights the key factors driving the surge in Reliance Power shares. He notes, “Reliance Power has successfully eliminated its debt, repaying ₹800 crore and achieving a debt-free status on a standalone basis. This positions the company to focus on its order book, particularly following Budget 2024, which is geared towards growth. The market anticipates that the benefits from the budget will be reflected in Reliance Power’s order book in FY25. It will be important to observe how much of this benefit translates into financial improvements and order book growth.”

Reliance Power Share Price Target:

Sumeet Bagadia, Executive Director at Choice Broking, discusses the outlook for Reliance Power shares. He states, “The share price of Reliance Power is on a positive trajectory, having established a solid base at ₹32. Shareholders are advised to hold the stock with a trailing stop loss at ₹32, aiming for short-term targets of ₹38 and ₹40 per share. New investors should consider buying Reliance Power shares for these targets, while maintaining a strict stop loss at ₹32. A buy-on-dips strategy is recommended for this Anil Ambani-owned company until the stock price surpasses ₹32.