Reliance Power Ltd’s shares surged sharply by nearly 18.7% on Friday, hitting a high of ₹52.90 and closing around ₹52.57. This marks a strong rally for the stock, which has gained 17.5% so far in 2025 and an impressive nearly 100% over the past year. Over five years, Reliance Power’s shares have skyrocketed by more than 2,800%.
A key catalyst behind this rally is Reliance Power’s recent announcement of a joint venture with Bhutan’s Druk Holding and Investments (DHI) to develop India’s largest solar power project, a ₹2,000 crore, 500 MW capacity solar park under a 50:50 partnership. The project will follow a Build-Own-Operate (BOO) model and signifies Reliance Group’s strategic thrust on expanding renewable energy and deepening India-Bhutan economic ties. Reliance Power’s total clean energy pipeline now stands at 2.5 GWp in solar, making it a leader in integrated solar and battery energy storage systems.
Market analysts see this move as boosting investor confidence amid broader positive trends in the power and renewables sectors. However, experts also caution:
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Kranthi Bathini (WealthMills Securities) notes the stock has historically been volatile and risky, suitable mainly for high-risk investors.
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Technical analyst Jigar Patel (Anand Rathi) sees near-term support at ₹48 and resistance at ₹53, with a possible rally towards ₹56 if the stock decisively breaks ₹53.
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The stock is trading above all major moving averages, indicating a strong bullish trend.
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The 14-day RSI at 75.88 signals an overbought condition, suggesting a possible short-term correction.
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Valuation metrics are stretched: P/E ratio at 327.8 is very high, EPS is low (₹0.16), and RoE is modest (0.71%), indicating the company is still recovering financially.
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The stock’s beta of 1.3 implies significant price volatility.
Promoters, led by Anil Ambani, hold a 24.98% stake as of early May 2025.
In summary, Reliance Power’s recent stock surge reflects optimism around its renewable energy expansion and strategic partnerships but comes with high volatility and valuation risks. Investors should approach with caution, balancing the growth potential against the company’s financial fundamentals and market risks.
