Reliance Power shares have been on an impressive upward trajectory since the Union Budget 2024 was announced. On July 23, 2024, the share price closed at Rs 26.94 per share on the National Stock Exchange (NSE). Since then, the stock has consistently reached new 52-week highs, signifying a strong investor sentiment.
In the post-Budget 2024 period, this Reliance Anil Dhirubhai Ambani Group (Reliance ADAG) stock has climbed from Rs 26.94 to Rs 34.54 per share, marking a substantial 30 percent increase over eight consecutive trading sessions.
Stock market experts attribute this surge to Reliance Power achieving debt-free status on a standalone basis. The company successfully settled its Rs 800 crore dues, allowing it to compete effectively with other private power sector companies in the upcoming financial year (FY25).
The Union Budget 2024, with its emphasis on growth in the power and infrastructure sectors, is expected to further boost Reliance Power’s balance sheet in FY25, further enticing investors.
However, despite becoming debt-free, the company faces challenges regarding its order book, which are anticipated to be addressed in the coming quarters of the current fiscal year.
As of August 2, Reliance Power’s market capitalization stood at Rs 13,886.67 crore, a significant increase from Rs 10,813.68 crore on July 23. This substantial growth in market capitalization demonstrates the positive impact of the company’s debt-free status and the optimistic outlook for its future performance.
