Shares of Reliance Power Ltd saw a major rally on Friday, rising by 18.66% intraday and reaching a peak of ₹52.90. The stock finally settled at ₹52.47, up 17.70%, showing strong investor interest. So far in 2025, it has climbed 16.39% year-to-date (YTD), indicating growing confidence in the company’s future.
The surge comes at a time when Indian stock markets are showing renewed enthusiasm for companies focused on renewable energy and strategic international projects. Reliance Power, once written off by many investors, is now being watched closely for its new initiatives.
Major Breakthrough: ₹2,000 Crore Solar Power Project with Bhutan
Reliance Power’s stock rally is largely driven by its announcement of a landmark joint venture with Druk Holding and Investments (DHI), Bhutan’s government-owned investment arm. The companies have partnered to build a 500 megawatt (MW) solar power plant, which will be the largest India-associated solar project in Bhutan.
The deal, valued at ₹2,000 crore, is based on the Build-Own-Operate (BOO) model, with both companies holding equal stakes (50:50). This clean energy project is a big move for the company and marks Reliance Power’s deeper entry into the fast-growing green energy sector.
A Strategic Shift Towards Clean Energy
According to Reliance Group, the move reflects a strategic shift. “This solar investment underlines Reliance Group’s focus on expanding its renewable energy portfolio,” the company said. “It also reinforces our commitment to India-Bhutan economic cooperation.”
This project is part of Reliance Power’s larger clean energy pipeline, which now stands at 2.5 gigawatt peak (GWp). The company is aiming to become a dominant player in India’s solar and Battery Energy Storage System (BESS) segment — a sector that’s expected to grow rapidly in the next 5–10 years.
Analysts Applaud the Deal but Caution on Stock Performance
Mixed Sentiments in the Market
While many investors cheered the stock’s rise, market experts have issued cautious advice. According to Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, Reliance Power is currently benefiting from sector-wide tailwinds in power and infrastructure.
However, he warned that the stock has been unreliable in the past. “RPower has often disappointed long-term investors. This stock is only suitable for those with a high-risk appetite and the ability to handle volatility,” he said.
Technical Analysis Hints at Further Gains
Jigar S Patel, a technical analyst from Anand Rathi, also shared his views on the stock. He identified ₹48 as support and ₹53 as resistance. “If the stock breaks above ₹53 decisively, we could see it heading toward ₹56,” Patel said.
He also predicted a short-term trading range between ₹46 and ₹53, suggesting that investors could expect continued activity and volume in the stock over the next few days.
Reliance Power’s Technical Indicators Show Strong Momentum
At present, Reliance Power is trading above all key moving averages, including the 5-day, 10-day, 20-day, 30-day, 50-day, 100-day, 150-day, and 200-day simple moving averages (SMA). This indicates strong technical momentum.
Its 14-day Relative Strength Index (RSI) is at 75.88, placing it in the overbought zone. This could suggest a short-term pause or correction, but also shows that investor sentiment remains strong.
Financial Snapshot: High Valuation, Low Returns
Despite the buzz, some financial metrics show caution. According to data from the Bombay Stock Exchange (BSE):
- Price-to-Earnings (P/E) ratio stands at 327.81, indicating high valuation relative to earnings.
- Price-to-Book (P/B) ratio is 2.29, reflecting a moderate market value compared to assets.
- Earnings Per Share (EPS) is ₹0.16, which is quite low.
- Return on Equity (RoE) is just 0.71%, showing limited profitability.
According to data by Trendlyne, the company also has a beta value of 1.3, indicating that its stock is more volatile than the market.
Promoter Holding and Company Background
As of May 7, 2025, promoters held a 24.98% stake in the company, which is led by Anil Ambani. This level of promoter holding reflects some commitment, but the low RoE and high volatility continue to make investors cautious.Reliance Power, once known for its aggressive plans in the energy sector, has faced multiple setbacks in the past decade. However, its recent shift toward solar and renewable energy may mark a new beginning, especially if future projects perform well financially.
