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RattanIndia Power share price jumps another 11%, rallies 35% in June. What's powering the rally?
RattanIndia Power share price jumps another 11%, rallies 35% in June. What's powering the rally?

Mint

time3 days ago

  • Business
  • Mint

RattanIndia Power share price jumps another 11%, rallies 35% in June. What's powering the rally?

RattanIndia Power share price in focus today: Maintaining its strong bull run for the fifth consecutive trading session on Monday, June 30, shares of RattanIndia Power, a small-cap stock, gained another 11% to reach ₹ 15.90 apiece on a strong spike in trading volumes, taking the five-day cumulative gain to 18%. A total of 400 million shares have exchanged hands on both the NSE and BSE as of 12:30 p.m. The company has witnessed a steady rise in demand for its shares on the Indian stock market in recent months, with June alone delivering a return of 35%, its biggest monthly gain since May 2024. It has ended the last four months in the green, including the ongoing month, with a total gain of 72%. The sharp rise in value has also drawn attention from the exchanges, which sought clarification on the sudden surge. In response, the company stated that no material information or announcement requiring disclosure under applicable regulations had been made, nor had any such information been withheld, as per its June 10 filing. After hitting a 13-year high of ₹ 21 in June 2024, the stock came under sustained selling pressure over the following months, losing nearly 60% of its value by February 2025. However, it managed to break its prolonged losing streak in March 2025 with a 10% gain, and the momentum continued over the next three months. Despite the strong comeback after a long period of weakness, the stock still trades well below its all-time high of ₹ 45, which it had touched in October 2009, its listing year. Looking at its annual performance since then, the stock remained volatile, ending seven out of the next 11 years in the red. The tide, however, turned in its favor in 2023, when the stock closed the year with a gain of 126%. This was followed by another 52% gain in calendar year 2024. In the current year so far, it has added another 13%. RattanIndia Power is one of the leading private power generation companies, with an installed capacity of 2,700 MW of thermal power plants at Amravati and Nashik. For the March-ending quarter, the company reported a net profit of ₹ 126 crore on ₹ 936 crore of revenues. For the full FY25, the company reported a net profit of ₹ 222 crore on ₹ 3824 crore in revenues. Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.

Reliance Power stock jumps 100% in 3 months: A turnaround or another bubble?
Reliance Power stock jumps 100% in 3 months: A turnaround or another bubble?

Indian Express

time23-06-2025

  • Business
  • Indian Express

Reliance Power stock jumps 100% in 3 months: A turnaround or another bubble?

After 17 years, Reliance Power is back in the spotlight with a 100% rally in just three months. This mirrors the frenzy of February 11, 2008, when the company made its debut with a blockbuster IPO of Rs 11,563 crore. At that time, India's power sector was booming, and Reliance Power was raising funds for the country's biggest 28GW power development. However, it was also the time when the subprime financial crisis was starting to unfold in the US. The current environment resembles that of 2008. The US economy faces potential disruptions due to tariffs and geopolitical stress, while India's green energy projects are moving ahead due to government subsidies. Renewable energy IPOs are on the rise, and companies like Suzlon Energy have turned their fate around in this cyclical upturn. Investor optimism isn't limited to Reliance Power. RattanIndia Power's shares jumped 36% in under a week. Reliance Power and RattanIndia Power Stock Price Momentum Between May and June 2025 Meanwhile, Reliance Home Finance, another Anil Dhirubhai Ambani Group (ADAG) firm, rallied 115% in a month, fueled by speculation around a potential comeback of Reliance Power. So, the key question arises: Is this market reaction backed by fundamentals, or is it just another bubble? As per media reports, order wins, debt cleanup, settlement of legal cases, and fresh funding have raised the hopes of a turnaround and are driving Reliance Power's share price. But is this enough, given the near insolvency of parent Reliance Infrastructure and the group's corporate governance issues? Searching for value, we will look at each of the reasons and identify if it justifies the stock price. Are project wins a sign of a turnaround? Not necessarily. Reliance Power is no stranger to winning big orders. Its IPO aimed to raise money for 12 projects with a combined installed capacity of 28GW, the largest in the country at the time. However, prolonged delays and legal issues related to its power projects resulted in the company having enormous debt. In 2010-11, Reliance Power's 2,400 MW gas-based thermal power plant in Samalkot, Andhra Pradesh, failed due to a natural gas shortage. The company was left with Rs 2,500 crore in debt from the Export-Import Bank of the United States, which it settled in December 2024. Reliance Power had a long list of such projects that piled up bank debt, which it has been settling for the past few years by selling assets. Now, Reliance Power is trying its hand at large-scale solar and battery energy storage system (BESS) projects. Reliance Power project wins in 2025 Nature of client Client Project Size Investment PSU SJVN 350 MW solar-BESS – PSU Solar Energy Corporation of India 465 MW solar and 1.86 GW BESS Rs 10,000 crore Bhutan Government Druk Holding and Investments 350MW solar and 175MW BESS Rs 2,000 crore Source: Press Releases The timely execution of these projects within the budget and operational efficiencies will determine whether contract wins are good news for shareholders. Reliance Power's share price surged after the company announced that it has 'zero bank debt and no default' in its Q4 FY25 earnings released on May 9. This is a significant milestone, considering its recent escape from insolvency proceedings, unlike other ADA group companies (Reliance Capital and Reliance Naval and Engineering). The turnaround has come through equity dilution. Debt has been converted into shares and warrants, and subsidiaries have been sold off as lenders liquidated pledged shares. For instance, the Rs 3,872 crore loan guaranteed for Vidarbha Industries Power (VIPL) was resolved in September 2024 via pledged share sales. Every time Reliance Power reduced its debt, the company's share price showed a remarkable jump. Reliance Power's 5-Year Stock Price Momentum Factors Driving Reliance Power's Stock Price Momentum Period Reliance Power Share Price Rally Reason for rally 9-May to 11-Jun 2025 84% No Bank debt 13-Sep to 4-Oct 2024 70% Settled VIPL guarantee 15-Mar to 5-Apr 2024 47% Debt Settlement with ICICI Bank 27-Oct-2023 to 5-Jan-2024 87% Consolidated net loss narrowed to Rs 237.76 crore in Q2 FY24 and Rs 1,000 crore preferential raising 19-May to 16-June 2023 40% Made a Rs 1,200 crore one-time settlement offer to lenders of VIPL 19-Feb to 18-Jun 2021 411% Reduced debt Source: Media reports and company statements But does it mean Reliance Power's troubles are over? Not exactly. The company has converted most of its debt to equity and convertible warrants. Equity will dilute when these warrants are exercised, thereby reducing its earnings per share (EPS). As of now, Reliance Power has over Rs 15,153 crore debt on its balance sheet, which is 0.88x its equity as on March 31, 2025. Debt clean-up is a sign of turnaround. However, its impact on stock price could fade because of equity dilution. What about the future rally? Beyond debt reduction, the focus may now shift to sustainable earnings per share (EPS). Thus, stock price rally could be driven by future operational efficiency rather than simply a 'clean-up act' for past inefficiencies. In the case of Suzlon, the stock price rally was driven by revenue and EPS growth from wind turbine orders, which have a faster cash conversion cycle. Reliance Infrastructure has announced plans to enter solar and battery manufacturing. This is one area investors could look forward to, as backward integration could help Reliance Power secure equipment supply at a lower cost. However, competition is intensifying. Companies like Waaree Energies and Premier Energies, both publicly listed, are expanding rapidly with clean balance sheets and vertically integrated models. Many PLI-backed firms are also entering both manufacturing and generation. Reliance Power's success is tied to Reliance Infrastructure. When Reliance Power wins a power project, it awards an engineering, procurement, and construction (EPC) contract to Reliance Infrastructure. Reliance Infrastructure has built Reliance Power's flagship 3.96 GW Sasan Ultra Mega Power Plant in Madhya Pradesh, Butibori plant in Nagpur, among others. While inter-group contracts bring efficiency, they also tie them to others' problems. Hence, it becomes imperative to analyse the situation of Reliance Power and Reliance Infrastructure simultaneously. The Anil Dhirubhai Ambani Group had Reliance Commercial, Reliance Capital, Reliance Naval and Engineering, all of which were sold in insolvency proceedings. As for Reliance Home Finance, promoter holdings have dropped to 0.74%. While the group still holds Reliance Communications, it has been selling communications assets to Jio. What is left of the ADA Group is Reliance Power and Reliance Infrastructure. All hopes of a turnaround depend on these two companies. Hence, their share prices move in sync. ADA Group is riding on investors' hopes of positive returns. With a net worth of Rs 16,337 crore and a market cap of Rs 27,291 crore, Reliance Power has a price-to-book value (P/BV) of 1.65x. It is relatively higher than RattanIndia Power's P/BV of 1.55x but lower than NTPC's 1.75x. Although NTPC has a higher ratio, its fundamentals are way better than Reliance Power's, making the latter look expensive. Small brokerages and individual investment companies remain cautious. A market correction is likely as short-term investors book profits. The two stocks are riding on order wins. A significantly large EPC order book will require huge working capital. For the stocks to sustain their rally, the company has to achieve smooth execution of projects, and the economic conditions have to remain favourable. Reliance Power and Reliance Infrastructure are stocks to keep an eye on for their turnaround signs, but also be cautious for red flags that could disrupt the recovery. Note: We have relied on data from throughout this article. Only in cases where the data was not available, have we used an alternate, but widely used and accepted source of information. Puja Tayal is a financial writer with over 17 years of experience in the field of fundamental research. Disclosure: The writer and his dependents do not hold the stocks discussed in this article. The website managers, its employee(s), and contributors/writers/authors of articles have or may have an outstanding buy or sell position or holding in the securities, options on securities or other related investments of issuers and/or companies discussed therein. The content of the articles and the interpretation of data are solely the personal views of the contributors/ writers/authors. Investors must make their own investment decisions based on their specific objectives, resources and only after consulting such independent advisors as may be necessary.

RattanIndia Power shares skyrocket 35% in 2 days, firm issues clarification on sudden volume spike
RattanIndia Power shares skyrocket 35% in 2 days, firm issues clarification on sudden volume spike

Time of India

time11-06-2025

  • Business
  • Time of India

RattanIndia Power shares skyrocket 35% in 2 days, firm issues clarification on sudden volume spike

Shares of RattanIndia Power surged as much as 12.9% on Wednesday, taking their two-day rally to 35%, amid a spike in trading volumes and strong bullish signals on technical charts. The stock touched an intraday high of Rs 16.13 on the NSE, with 20.5 crore shares changing hands. In response to a query from the National Stock Exchange over the sharp rise in price and volumes, the company issued a formal clarification late Tuesday. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Bank Owned Properties For Sale In Thon Binh Dan (Prices May Surprise You) Foreclosed Homes | Search ads Search Now "We wish to clarify that the Company is not aware of any reason for the recent significant increase in the trading volume of its shares. The movement in price and volume is purely market driven," the company said in a statement. "There has been no material information or announcement that is required to be disclosed to the Stock Exchanges under applicable regulations, nor has any such information, been withheld," it added. The company emphasized its compliance with all SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, stating that it 'adheres diligently to all disclosure requirements stipulated under its listing agreement with the Stock Exchanges.' Live Events Board-level change earlier this week The clarification follows a separate disclosure made over the weekend regarding a board-level change. On Saturday, the company informed the stock exchanges that Baliram Ratna, Whole-time Director, had resigned with effect from June 6, 2025, citing personal reasons. Mixed fundamentals, bullish technical Despite the rally, the fundamentals present a mixed picture. In the March quarter (Q4FY25), the company's consolidated net profit plummeted 99% year-on-year to Rs 126 crore from Rs 10,666 crore a year earlier. However, consolidated revenue rose 3% to Rs 1,029 crore from Rs 996 crore in the corresponding quarter. Technically, the stock appears to be in overbought territory. It is trading above all eight key simple moving averages (SMA), including the 5-day to 200-day SMAs, suggesting strong bullish momentum. The Relative Strength Index (RSI) is at 82.5, indicating that the stock is "strongly overbought" and may be due for a pullback. The Moving Average Convergence Divergence (MACD) is also positive at 0.5 and remains above both the center and signal lines, reinforcing bullish signals. Stock performance Despite the recent gains, the smallcap stock is down 7% over the past year. However, it has jumped 61% in the past month and 42.3% in the past week, highlighting the intensity of the latest rally. RattanIndia Power operates thermal power plants with an installed capacity of 2,700 MW at Amravati and Nashik in Maharashtra. The company says it has investments worth Rs 18,615 crore, with its facilities spanning 2,400 acres. Also read | From bankruptcy to bull run: Can Reliance Infra & Reliance Power fuel Anil Ambani's comeback saga? ( Disclaimer : Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)

RattanIndia Power shares skyrocket 35% in 2 days, firm issues clarification on sudden volume spike
RattanIndia Power shares skyrocket 35% in 2 days, firm issues clarification on sudden volume spike

Economic Times

time11-06-2025

  • Business
  • Economic Times

RattanIndia Power shares skyrocket 35% in 2 days, firm issues clarification on sudden volume spike

Shares of RattanIndia Power surged as much as 12.9% on Wednesday, taking their two-day rally to 35%, amid a spike in trading volumes and strong bullish signals on technical charts. The stock touched an intraday high of Rs 16.13 on the NSE, with 20.5 crore shares changing hands. ADVERTISEMENT In response to a query from the National Stock Exchange over the sharp rise in price and volumes, the company issued a formal clarification late Tuesday. "We wish to clarify that the Company is not aware of any reason for the recent significant increase in the trading volume of its shares. The movement in price and volume is purely market driven," the company said in a statement. "There has been no material information or announcement that is required to be disclosed to the Stock Exchanges under applicable regulations, nor has any such information, been withheld," it company emphasized its compliance with all SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, stating that it 'adheres diligently to all disclosure requirements stipulated under its listing agreement with the Stock Exchanges.' ADVERTISEMENT The clarification follows a separate disclosure made over the weekend regarding a board-level change. On Saturday, the company informed the stock exchanges that Baliram Ratna, Whole-time Director, had resigned with effect from June 6, 2025, citing personal the rally, the fundamentals present a mixed picture. In the March quarter (Q4FY25), the company's consolidated net profit plummeted 99% year-on-year to Rs 126 crore from Rs 10,666 crore a year earlier. However, consolidated revenue rose 3% to Rs 1,029 crore from Rs 996 crore in the corresponding quarter. ADVERTISEMENT Technically, the stock appears to be in overbought territory. It is trading above all eight key simple moving averages (SMA), including the 5-day to 200-day SMAs, suggesting strong bullish Relative Strength Index (RSI) is at 82.5, indicating that the stock is "strongly overbought" and may be due for a pullback. The Moving Average Convergence Divergence (MACD) is also positive at 0.5 and remains above both the center and signal lines, reinforcing bullish signals. ADVERTISEMENT Despite the recent gains, the smallcap stock is down 7% over the past year. However, it has jumped 61% in the past month and 42.3% in the past week, highlighting the intensity of the latest Power operates thermal power plants with an installed capacity of 2,700 MW at Amravati and Nashik in Maharashtra. The company says it has investments worth Rs 18,615 crore, with its facilities spanning 2,400 acres. ADVERTISEMENT Also read | From bankruptcy to bull run: Can Reliance Infra & Reliance Power fuel Anil Ambani's comeback saga? (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times) (You can now subscribe to our ETMarkets WhatsApp channel)

RattanIndia Power shares jump 18% amid significant volumes. BSE seeks clarification for sudden spike
RattanIndia Power shares jump 18% amid significant volumes. BSE seeks clarification for sudden spike

Economic Times

time10-06-2025

  • Business
  • Economic Times

RattanIndia Power shares jump 18% amid significant volumes. BSE seeks clarification for sudden spike

RattanIndia Power claims to be one of India's largest private power generation companies, with an installed capacity of 2,700 MW of thermal power plants. Synopsis The rally in RattanIndia Power stock comes despite the absence of any known trigger, prompting the BSE to seek a formal clarification from the company. The stock has been gaining for four straight sessions, with a cumulative 26% rise even as its long-term performance remains muted. Shares of RattanIndia Power jumped 18% on Tuesday, hitting the day's high of Rs 14.04 on the NSE amid significant volumes as 19.47 crore shares changed hands. ADVERTISEMENT The immediate reason for the spike was not known, and BSE has sought clarification from the company concerning the movement in volume. The stock has been on a winning streak, remaining unbeaten for the past four trading sessions and extending gains to 26% during this period. On Saturday, the company had informed about the company's Whole-time Director Baliram Ratna's resignation with effect from June 06, 2025, due to personal Power claims to be one of India's largest private power generation companies, with an installed capacity of 2,700 MW of thermal power plants at Amravati and Nashik (1,350 MW at each location) in Maharashtra. It has investments worth Rs 18,615 crores, and the power plants are spread over an area of 2,400 smallcap stock has been a market laggard and has traded flat this year, while on a one-year basis, its price has eroded by 20%. ADVERTISEMENT The stock is currently trading above its 50-day and 200-day simple moving averages (SMAs) of 10.5 and 12.5, respectively, according to Trendlyne RattanIndia Power stock has been quite volatile and has traded with a 1-year beta of 1.3. ADVERTISEMENT Also Read: Ashish Kacholia's portfolio conundrum: When earnings pop but stock prices sink up to 37% in CY25The company's Q4FY25 earnings witnessed a significant drop, with the consolidated net profit reported at Rs 126 crore versus Rs 10,666 crore in the year-ago period. It was a 99% year-on-year plunge. The company's consolidated revenue was up over 3% at Rs 1,029 crore versus Rs 996 crore in the corresponding quarter of the last financial year. ADVERTISEMENT (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times) (You can now subscribe to our ETMarkets WhatsApp channel) Nikita Papers IPO opens on May 27, price band set at Rs 95-104 per share Nikita Papers IPO opens on May 27, price band set at Rs 95-104 per share Why gold prices could surpass $4,000: JP Morgan's bullish outlook explained Why gold prices could surpass $4,000: JP Morgan's bullish outlook explained Cyient shares fall over 9% after Q4 profit declines, core business underperforms Cyient shares fall over 9% after Q4 profit declines, core business underperforms L&T Technology Services shares slide 7% after Q4 profit dips L&T Technology Services shares slide 7% after Q4 profit dips Trump-Powell standoff puts U.S. Rate policy in crosshairs: Who will blink first? Trump-Powell standoff puts U.S. Rate policy in crosshairs: Who will blink first? SEBI warns of securities market frauds via YouTube, Facebook, X and more SEBI warns of securities market frauds via YouTube, Facebook, X and more API Trading for All: Pi42 CTO Satish Mishra on How Pi42 is Empowering Retail Traders API Trading for All: Pi42 CTO Satish Mishra on How Pi42 is Empowering Retail Traders Security, transparency, and innovation: What sets Pi42 apart in crypto trading Security, transparency, and innovation: What sets Pi42 apart in crypto trading Bitcoin, Ethereum, or Altcoins? How investors are structuring their crypto portfolios, Avinash Shekhar explains Bitcoin, Ethereum, or Altcoins? How investors are structuring their crypto portfolios, Avinash Shekhar explains The rise of Crypto Futures in India: Leverage, tax efficiency, and market maturity, Avinash Shekhar of Pi42 explains NEXT STORY

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