Reliance Power shares have experienced a notable surge following the presentation of Budget 2024, with the stock hitting a 52-week high and rising by approximately 30% in just five sessions. On July 23, 2024, Reliance Power’s share price stood at ₹26.94 on the NSE. Since then, it has climbed to ₹34.54, reflecting a significant appreciation.
The upward trend in Reliance Power’s stock can be attributed to several key factors. One major development is the company’s transition to a debt-free status. Reliance Power has recently repaid ₹800 crore in dues, eliminating its standalone debt. This financial milestone has bolstered investor confidence, as the company is now positioned to compete more effectively within the power sector.
The Budget 2024 has also played a crucial role in this rally. The budget, which emphasizes growth in power and infrastructure, has created a favorable outlook for companies in these sectors. Analysts believe that the benefits from the budget are expected to positively impact Reliance Power’s balance sheet in the upcoming fiscal year (FY25), further fueling the stock’s rise.
Avinash Gorakshkar, Head of Research at Profitmart Securities, highlighted that Reliance Power’s debt-free status opens up new opportunities for the company to focus on expanding its order book. The growth-oriented nature of Budget 2024 is anticipated to enhance the company’s future prospects, though the precise impact on the order book will become clearer in the coming quarters.
Sumeet Bagadia, Executive Director at Choice Broking, advised that the stock has established a solid support level at ₹32. He recommended holding the shares with a trailing stop loss at ₹32 and suggested short-term targets of ₹38 to ₹40 per share. For new investors, Bagadia recommended buying Reliance Power shares, provided they maintain a strict stop loss at ₹32.
Overall, Reliance Power’s impressive stock performance post-Budget 2024 reflects investor optimism about the company’s improved financial health and the positive effects of government policy on the power sector.
hii Aditi Sahu this side..
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