Reliance Power share: Why is Anil Ambani-owned stock rising post-Budget 2024?

Stocks to buy: Reliance Power shares have been on an uptrend after the presentation of Budget 2024. On 23rd July 2024, Reliance Power share price finished at ₹26.94 per share on the NSE, and since then, it has been hitting a 52-week high regularly. In post-Budget 2024, this Reliance Anil Dhirubhai Ambani Group or Reliance ADAG stock has risen from ₹26.94 to ₹34.54 apiece, logging around 30 percent appreciation in eight straight sessions.

According to stock market experts, Reliance Power is now a debt-free company on a standalone basis. The company has repaid its ₹800 crore dues, and the Reliance ADAG company is expected to compete with other private power sector companies in FY25. The Budget 2024 is a growth-oriented budget focusing on power and infrastructure. They said the market expected the budget benefit to trickle down into the company's balance sheet in FY25, which has fueled buying interest in Reliance Power shares. However, they maintained that after becoming a debt-free company, the company is facing an acute challenge on the order book front, which is expected to become clear in the upcoming quarters of the current fiscal.

Triggers for Reliance Power shares?

Highlighting the factors instrumental in Reliance Power share price rally, Avinash Gorakshkar, Head of Research at Profitmart Securities, said, “Reliance Power is no longer a debt-hit company. The company has repaid its ₹800 crore debt and is now a debt-free company on a standalone basis. So, the company can now work on its order book, especially after the Budget 2024, which is a growth-oriented budget. So, the market expects the benefit to be reflected in the company's order book in FY25. However, it would be interesting to see how much benefit trickles down into the financials and order book of Reliance Power.”

Reliance Power share price target

Speaking on Reliance Power shares, Sumeet Bagadia, Executive Director at Choice Broking, said, "Reliance Power share price is on an uptrend. The stock has made a strong base at ₹32. Reliance Power shareholders are advised to hold the scrip with trailing stop loss at ₹32 for the short-term targets of ₹38 and ₹40 apiece. Fresh investors can also buy Reliance Power shares for the above-mentioned targets, maintaining a strict stop loss at ₹32. One can maintain a buy-on-dips strategy in this Anil Ambani-owned company until the stock price exceeds ₹32."

Disclaimer: The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.