Reliance Power Stock Surges 11% — Why Analysts See 4x Potential:-
The stock of Reliance Power Company which has suddenly come into the news is showing a huge rise of 11% today. And from here onwards why 4x targets are coming for this company. That is, this stock of ₹ 58 is trying to gain a target of ₹ 240 from here and market analysts as well as investors are after this stock. Friends, despite showing such tremendous growth, if you look at the PE ratio of this company, it is 8.30. That means, if we look at the past few days, there has been a tremendous rally in the shares of this company.
Massive 45% Rally in One Month:-
But still, if we look at the company’s shares in the last 1 month, there has been a tremendous increase of 44.75 i.e. almost 45% in the last 1 month. But despite all this, the company’s shares are seen operating at a PE multiple of only 8.30. This company that is constantly making new dimensions and new 52 week highs, after all what are the four big news for this company that are acting as fuel for this company to run.The company released its quarter four numbers , after that this kind of volume started coming and after that we will see that in the last trading session, 53 crore shares were traded. This is not a ₹4 company. Reliance Power company’s share is 58.
Major Order Win Fuels Optimism:-
In this, 53 crore shares were traded. Normally this volume has also been created in the last few days only. But if we compare this volume, we will see here that almost four times the Forex volume has come and at the same time, the volume coming in the shares of this company tells the story of this company. What kind of company was it and what has it become now? We will know all the big things one by one. After all, why has this volume come into the company?
Reliance Power Company ‘s subsidiary company is Reliance NU Energies Private Limited. This company has received Letter of Award i.e. LOA from SVN Limited. This company has to build 350 MW Interest Termination System Transmission System for SVN which is a Navaratna Central Public Sector Enterprises. And friends, the company also has to build a capacity 175 MW 700 MW hover battery energy storage system. Once commissioned, the company will add 600 MW of Solar DC capacity and 700 MWh of BE Doubles capacity to the Reliance Power portfolio.
Long-Term Revenue Visibility Through PPA:-
The company’s leadership has a DC capacity of 2.4 GW of solar and at the same time its VS capacity is also 2.5 GW. This market has become the largest player in India in the integrated solar plus piece segment, which is a very big thing. Any company that we have seen in the last few days is yearning for profitability. The company is not able to create profitability and suddenly it has got such a huge order and such a huge work because it has become the largest player in Make in India. Major Solar and Battery Project which has been awarded to it.
Strong Growth Pipeline: 2.4 GW Solar, 2.5 GW Storage:-
Its subsidiary has been awarded 350 MW plus 175 MW. Battery storage is to be built under which this company will be paid Rs 3.33 per kilowatt hour for the next 25 years. This is a very crucial order and when such a huge order for such a long time is placed in the hands of a company, then friends, the fortunes of the company change there. Now we will talk about what the company has to install capacity wise. Install DC power capacity of solar of 600 MW. The battery energy storage capacity is of 175 MW and the total clean energy which is in the pipeline for this company now stands at 2.4 GW of solar DC and 2.5 GW of hour storage capacity. The company is yet to build it and has already become the largest integrated player in making in India.
Equity Infusion Through Warrant Conversion:-
The company is a big name and is doing big work. Along with this, the other big update about the company which has provided fuel to the price of this company, this news is about the warrant conversion into equity share update. The current price of ₹33 might seem very cheap to you but this price action which has happened from ₹40 to ₹5860 today we are seeing this is the price change of the last 7 to 10 days and there this ₹33 was looking very attractive. Here you see that Reliance Power company has converted 1.33 crore warrants into equity shares from which the company has raised a total of Rs 43.89 crore. Friends, this is a tremendous offer the company has received here and it has been subscribed by Reliance Infra and Basera Home Finance. It has been converted, which is a great plan of the company. The total shares issued are 1.33 crore and these have been converted into equity shares. But their share price has been ₹ 33. The total fund which has been converted in this manner is 43.89 crore. About the investors who are involved in this. And the implication is that there has been capital infusion. Second, the share capital has increased.
Global Expansion: 500 MW Project in Bhutan:-
Investors should watch where the company is using the money it has recently received. The company is trying several new things to move itself forward. About the third big update which is the third big thing the company has received. Reliance Power signs a commercial term sheet for a long term power purchase agreement v Green Digital Private Limited within Bhutan. Friends, this company has now taken up the responsibility of working not only within India but also abroad. Green Digital Private Limited is owned by Dak Druk Holding and Investment Limited known as DHI which is an investment arm of the Royal Government of Bhutan. This company is considered to be the right hand of the Bhutan Government. Now Reliance Power is in partnership with this company and this is not an ordinary partnership but it is the partnership of the largest 500 MW solar power project in which there is a 50-50 partnership.
Technically Strong: Above All Major Moving Averages:-
That means if a decision is taken then both the companies will have to take the decision. When such a deal takes place, a 50-50 deal, then not just one company takes the decision but both the companies take the decision together. The solar power project will be have a capital outlay up to Rs 2,000 crore making the largest foreign direct investment in Bhutan’s solar energy sector.The investment of Rs 2000 crore in the solar energy sector of Bhutan is a huge investment. Such a huge investment is being made within a country. India has already taken huge steps in the field of solar power. But now Bhutan has also started following this path. Reliance Power to launch engineering procurement and construction bill for the landmark Bhutan solar project. So friends, this is the third big news, this big update that has come here about this company. About Reliance Power company’s share which has zoomed by 16%. Today this company’s share is trading above the simple moving average of 5 day, 10 day, 20 day, 30 day, 50 day , 100 150, 200 day. In such a situation, at a time when many companies are struggling to keep themselves positive, today the stock of this company is not only trading above all these moving averages, but you will also see that the company has created a new 52-week high.
Analysts Issue Upgraded Targets:-
In such a situation, after such big news, there are many good targets coming for this company. a target of ₹65 here. Jigaresh Patel gives a target of ₹ 68 to this company. At the same time, the fourth and the biggest update for this company is that before the Quarter 4 numbers that have come out today, this company was called a loss making company. If any investor about this company then first of all he would discuss about the losses of this company.
From Loss to Profit: Q4 Financial Turnaround:-
Not only has this company eliminated its loss which was Rs 397 crores but now the company has made a profit of Rs 126 crores. This is a huge achievement for this company. Friends, recently the company has done four big things which can change the fortunes of the company. Now let us talk about the massive work the company has done recently. Reliance Power subsidiary gets order. Asia’s largest solar power project which the company has to finalize in the coming two years.
Long-Term Vision: 500 GW by 2031-32:-
The aim of the company is that in the coming time, the company will create 500 GW of renewable energy capacity by 2031-32. At the same time, about this company, then recently a very tremendous analysis has come on the stock tweets that if this company crosses the crucial resistance of ₹ 52 to ₹ 54 upwards, then we may see a very tremendous rally in this company in the coming time. About this company till 2030, then a very strong target is coming here. You all can see the shares of this company in the range of 60 to 220 till 2030 which is quite amazing. Although there are still 5 years till 2030. There are n’t such huge targets in 5 years. These targets can change.
Crucial Resistance Level Broken: ₹52–₹54:-
If the company does well and continues to work the way it is currently working, then this target will be achieved. The level of ₹ 53 emerged as a very crucial resistance and all the big research analysts talk about it. Something similar could have happened here too. The kind of downfall that happened last time, a similar downfall could happen here too. But these big sticks of volume that you see at the bottom, this is not a normal volume. But when this volume came. Last time such a great meaning was shared inside the circuits. Yet the volume was not like that. Now look at the volume, it is so great and this volume has broken all the levels of ₹55, ₹53 and has closed at ₹58 and in the times to come, new targets are waiting for all of you.