June 2, 2025 | Mumbai – Shares of Reliance Power Ltd (NSE: RPOWER) were in sharp focus this week as investor sentiment remained mixed following the company’s renewed push toward deleveraging its balance sheet and scaling down non-core assets. On Monday, the stock saw high intraday volatility, reflecting the market’s response to both recent restructuring announcements and broader sectoral trends in the Indian power and infrastructure segment.
Stock Performance Snapshot
- Current Price: ₹XX.XX (live data placeholder)
- 52-Week Range: ₹XX.XX – ₹XX.XX
- Market Cap: ₹X,XXX crore
- Volume Surge: Over 2.5X the average daily volume traded in the last 24 hours
Why Are Reliance Power Shares in the News?
Reliance Power, a part of the Anil Dhirubhai Ambani Group (ADAG), has been in the spotlight due to its aggressive debt reduction strategy initiated in late 2024. The company recently confirmed progress in offloading several non-operational assets and renegotiating long-term liabilities with lenders.
According to a recent exchange filing, Reliance Power has:
- Reduced its consolidated debt by over ₹2,000 crore in FY 2024–25
- Completed the sale of surplus land parcels and partial stakes in select renewable projects
- Restructured loans on favorable terms with key public sector banks
These developments have led analysts to take a cautiously optimistic view of the stock, which has underperformed over the past five years due to high leverage and underutilized capacity.
Expert Commentary
Market expert and energy sector analyst Ritu Desai commented:
“Reliance Power’s recent moves show signs of a turnaround strategy. The company has shifted its focus toward asset-light operations and financial discipline, which could improve long-term valuations if sustained.”
However, she also added that “investors should be wary of speculative rallies, as short-term gains are often sentiment-driven in penny stocks like RPower.”
Sector Outlook: Is the Power Play Back?
India’s power sector is experiencing a cyclical uptick, driven by:
- Higher demand from data centers, manufacturing, and EV infrastructure
- Government incentives for renewable energy production
- Privatization of distribution and grid modernization in key states
While Reliance Power is not a leading player in solar or green hydrogen yet, the company has signaled interest in entering hybrid renewable projects in future quarters.
Investor Advisory
Despite the positive buzz, analysts urge caution. The stock remains high-risk, high-volatility, and heavily retail-driven. Investors should monitor:
- Debt-to-equity ratio movements
- Any fresh fundraising or equity dilution
- Earnings reports and operational updates, especially related to its Rosa and Butibori thermal assets
Conclusion
Reliance Power’s shares are gaining renewed interest, largely due to its visible efforts toward financial cleanup and strategic realignment. Whether this translates into long-term shareholder value remains to be seen. For now, the stock’s journey remains one to watch—marked by both risk and revival.
Last Updated on: Monday, June 2, 2025 11:40 am by Kavya | Published by: Kavya on Monday, June 2, 2025 11:40 am | News Categories: News
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