Reliance Power , a company in everybody’s mouth from past 1 month, as its moving upwards with current Stock price of 50 Rs. It provided almost 60% profit in Nealy one month. We got many queries regarding same so we did fundamental analysis of the stock and tried to answer question Is Reliance Power a good Stock?
Is Reliance Power a good stock?
We referred Wikipedia , Reliance power website and many other references to do our research on the company .Lets get into analysis and find answer to individual questions.To do so, first we have to understand company and history.
Reliance Power Fundamentals and Company History:
Rpower company is mainly into generation of power and also coal mining .It works both within India and also outside. Its part of Reliance Group. Anil Ambani leads this company. Reputation of leader is not good, but now he is trying to make a strong comeback.
The company has power generation assets of 6000 MW.
Project includes:
Three coal-fired projects :For this coals are supplied from India mines and also from outside.
one gas-fired projects.
Twelve hydroelectric projects- where six present in Arunachal Pradesh, five in Himachal Pradesh and one in Uttarakhand.
3,960 MW Sasan Ultra Mega Power Project (Madhya Pradesh)this is important as Ultra Mega Power Project are a significant part of the Indian government’s initiative to collaborate with power generation companies to set up 4,000 MW projects to ease the country’s power deficit situation.
Now company also trying to expand in to renewable energy sector. This is the news which is created some attention amongst retail investor.
Current Stats about Reliance Power: As Per screener.com
Market Cap-₹ 20,474 Cr
Current Price₹ 51.0
Profit growth-23.8 %
EPS₹ -4.91
Profit on quarter on quarter is still negative and same with Year on Year.
Read More: Simple way of Fundamental analysis.
What is happening to Reliance Power?
Recent news about Rpower is that they are building new projects in Bhutan. This project mainly include Solar and Hydro Projects.
Company is planning to expand into renewable energy sector and their electric utility already raised $183 million last week.
Reliance power debt reduction
Company gave press statement that company is returned all of their loans and now its debt free. Rpower settled all obligations as a guarantor for Vidarbha Industries Power Limited (VIPL).
Because of which Reliance Power was released from its corporate guarantee and all related undertakings .This was about totalled ₹3,872.04 crore.
Is Reliance Power profitable?
Company Is not yet profitable. But its showing good indications for future by taking up good projects in their existing and also new renewable energy sectors.
is it safe to buy reliance power share?
Company is always safe when they make profit, Rpower is not yet profitable and they are trying make a comeback.
Recent news says management approved to raise 4200Rs through unsecured foreign currency convertible bonds (FCCBs).
So fundraising always come with peer pressure of performing good, so buying now is more risky, wait for profits.
Is Reliance Power working on green energy?
We did our analysis by going through company website and found that they started working on Green Energy.Read More.
Solar Energy
They are present in Photo-Voltaic (PV) and Concentrated Solar Power (CSP) segments.
Company successfully did a 40 MW solar PV project in Pokharan, Jaisalmer, Rajasthan in March 2012.
Wind Energy
In the wind energy sector, company did a 45 MW wind project in Vashpet, Maharashtra in June 13.
As we mentioned above recently management updated that they are creating solar and hydro project in Bhutan.
What is the target of Rpower?
With more of retail engagement there is high chance of company crossing Rs 80 by end of December. But this is not due to company profit, this is only based on news. So there is high risk involved if you are making entry.
Note: This is not suggestion as we are not SEBI registered.Kindly check your financial advisor for more info.
Conclusion:
To answer our question Is Reliance Power a good stock? , we say its not yet become good stock . Here good means we are trying convey about safety of our money. So we need to wait for company to become profitable and then think again on fundamentals . Then only we can have concreate decision. This is surface level analysis we did and found risky. So once we get confidence we can go for more deeper analysis. We need to think about safety of our money. Hope this answers the query.
Happy Investing.
FAQ:
Is Reliance Power a loss or profit?
Currently its in Loss. Check above details.
What is reliance Power promoter Holding?
As per jun 2024 quarter its 23.24%.
Who is CEO of Reliance Power?
Raja Gopal Krotthapalli is the CEO of Reliance Power.