Reliance Power Stock Gains 3,000% in 5-Yr: Should You Buy?

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Reliance Power Stock Bullish Breakout Signals Further Upside: StockEdge

By S JHA

MUMBAI, June 3, 2025 –Reliance Power Ltd., once a struggling player in the energy sector, has staged a remarkable comeback, surging 3,000% over the past five years. A bullish breakout has caught the attention of investors and analysts alike.

StockEdge, a leading market analysis platform, provided a detailed commentary on the stock’s recent performance, highlighting both its potential for further gains and areas of caution. The stock presents a compelling yet nuanced investment case, claimed analysts.

StockEdge’s analysis underscores the stock’s strong momentum: “Reliance Power for years. Now it’s up 3,000% in 5 years and just gave a bullish breakout.” The breakout candle, resembling a Bullish Marubozu with minimal upper or lower wicks, indicates dominant buying pressure, said StockEdge in an analysis posted on its Telegram channel.

This was accompanied by a significant spike in trading volume, confirming robust investor interest, it added. “The Relative Strength Index (RSI) stands at 76.9, approaching overbought territory but rising alongside the price, which StockEdge interprets as a sign of bullish strength,” said the Kolkata-based brokerage firm.

The next resistance level to watch is ₹65.20. StockEdge notes, “Break above it with RSI > 70 could trigger further move to ₹80–₹100 levels. Watch momentum closely.” This suggests potential upside of 23% to 54% from the current price, making Reliance Power an attractive prospect for momentum traders, it added.

Delivery Data Raises a Red Flag

Despite the bullish setup, StockEdge flagged a concerning trend in delivery data: “While the price surged ~50% in May, delivery % actually fell to 22.8% last week from 33% in early May.” This divergence—rising price paired with falling delivery percentage—prompts a note of caution: “Rising price + falling delivery = Short-term caution?”

Lower delivery percentages could indicate that the recent rally is driven more by short-term speculative trading rather than long-term investor conviction, potentially signalling a risk of profit-taking or a pullback.

Stellar Performance and Financial Turnaround

Reliance Power’s performance over multiple timeframes is nothing short of impressive:

1 Month: +54.55%
1 Year: +152.63%
2 Years: +371.63%
5 Years: +3,000%+

The company’s financials for FY25 further bolster the bullish narrative. Revenue grew to ₹1,978 crore, up 4% year-on-year (YoY), while EBITDA soared 82% YoY to ₹589 crore. Profit before tax (PBT) swung to a positive ₹67 crore, compared to a loss in the previous year, driven by cost control and lower interest expenses, resulting in a significant margin boost.

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Green Energy Push and Capital Infusion

Reliance Power’s pivot to renewable energy has been a key driver of its resurgence. StockEdge highlighted several landmark projects:

A 930 MW solar + battery storage Power Purchase Agreement (PPA) with the Solar Energy Corporation of India (SECI), involving a ₹10,000 crore investment.
A 350 MW solar + 700 MWh storage project from SJVN.
A ₹2,000 crore, 500 MW solar project in Bhutan, marking the largest private-sector push in Bhutan’s renewable energy space.

To fund this growth, Reliance Power raised ₹392 crore through warrant conversion, with contributions from Reliance Infrastructure and Basera Home Finance. “Improved financial flexibility adds cushion for growth,” StockEdge noted, emphasizing the strengthened balance sheet as a positive for the company’s ambitious renewable energy pipeline.

Experts weighed in, reflecting a mix of optimism and caution. @RahulS80202766 on X posted, “Reliance Power heading towards 100++ soon. Reliance Power Ltd. arm signs 25-year PPA with SECI to develop Asia’s largest solar & battery energy storage system project.” This aligns with StockEdge’s bullish outlook, particularly the potential to reach ₹80–₹100 levels, and underscores the transformative impact of the company’s renewable energy initiatives.

However, @aniruddha_1972 cautioned, “ReliancePower RSI 76.9 overbought zone, stock may take a pause here, wait for confirmation to buy at dips, don’t jump in a hurry.” This echoes StockEdge’s concern about the high RSI and falling delivery percentage, suggesting that investors should be mindful of a potential short-term correction.

A Bullish Yet Cautious Outlook

StockEdge summarized its view: “Strong breakout, solid RE pipeline, financial turnaround = bullish setup. But… falling delivery %, high RSI, and past underperformance warrant caution.” Reliance Power’s impressive 3,000% rally over five years, coupled with its recent breakout and robust financials, positions it as a stock to watch. The company’s aggressive push into renewable energy, backed by significant capital infusion, further enhances its growth prospects. However, the declining delivery percentage and overbought RSI signal the need for vigilance, as short-term volatility could emerge.

Disclaimer: This article makes no recommendation for buy or sell of shares of any company.

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