Reliance Power, established to develop, construct, and operate power projects domestically and internationally, holds a substantial portfolio in the power generation sector.
Through its subsidiaries, it boasts diverse power generation capacities, including operational and under-development projects we will predict a reliance power share price target 2025 for every month.
Reliance Power Share Price Target 2025
Given the company’s mixed financial performance and ongoing projects, projecting the share price for Reliance Power involves considering multiple factors, including operational efficiency, project completions, and market conditions.
Below is a month-by-month forecast for Reliance Power share price target 2025:
| Month | Projected Share Price (₹) |
|---|---|
| Jan 2025 | 28.00 |
| Feb 2025 | 28.50 |
| Mar 2025 | 29.00 |
| Apr 2025 | 29.50 |
| May 2025 | 30.00 |
| Jun 2025 | 30.50 |
| Jul 2025 | 31.00 |
| Aug 2025 | 31.50 |
| Sep 2025 | 32.00 |
| Oct 2025 | 32.50 |
| Nov 2025 | 33.00 |
| Dec 2025 | 33.50 |
Company’s Generation Capacity
Reliance Power’s total generation capacity stands at an impressive 5,945 MW. This includes 5,760 MW of thermal capacity and 185 MW from renewable energy sources.
Major Projects in Operation
In FY23, Reliance Power had several key operational projects:
- Rosa Project at Shahjahanpur, UP: 1,200 MW
- UMPP at Sasan: 3,960 MW
- Solar PV Project at Dhursar, Rajasthan: 40 MW
- Concentrated Solar Power Project at Pokhran, Rajasthan: 100 MW
- Wind Project at Vashpet, Maharashtra: 45 MW
Financial Challenges and Defaults
In FY23, Reliance Power faced financial challenges, defaulting on loan repayments of approximately Rs 270 crores and interest payments of around Rs 250 crores.
Hydroelectric Power Projects
Reliance Power is developing various hydroelectric power projects with a combined capacity of approximately 3,438 MW.
These projects are located in Arunachal Pradesh, Himachal Pradesh, and Uttarakhand and are at different stages of development.
Samalkot Power Project (SMPL)
Reliance Power entered into a memorandum of understanding (MOU) with the Government of Bangladesh to develop a phased gas-based project with a total capacity of 3,000 MW.
As part of this initiative, its subsidiary, Reliance Bangladesh LNG and Power Limited, has been working on a long-term power purchase agreement (PPA) for the supply of 718 MW from a combined cycle gas-based power plant to be set up at Meghnaghat near Dhaka.
Non-Operational Projects in FY23
Several of Reliance Power’s projects were non-operational in FY23 due to various challenges:
- Butibori Power Plant (600 MW) in Nagpur, Maharashtra faced delays due to legal/regulatory issues, fuel supply shortages, and commercial disputes.
- Krishnapatnam Ultra Mega Power Project (3,960 MW) faced viability issues due to changes in Indonesian coal import regulations.
- Coal-based Power Project (3,960 MW) in Madhya Pradesh was put on hold due to unfavorable demand-supply conditions in the power sector.
Issue and Conversion of Warrants
In FY23, Reliance Power issued and allotted Rs 21 crores worth of warrants convertible into equity shares for Rs 15.55 each to VFSI Holdings Pte. Limited.
Additionally, it issued preferential shares worth Rs 33 crores to Reliance Infrastructure Limited upon the conversion of an equivalent number of warrants.
Quarterly Financial Performance
Reliance Power’s consolidated quarterly results for recent years showcase the company’s financial journey, with fluctuations in sales, expenses, and profits.
Below is a summary of the financial performance from March 2021 to March 2024:
| Quarter | Sales (Rs. Crores) | Expenses (Rs. Crores) | Operating Profit (Rs. Crores) | OPM (%) | Net Profit (Rs. Crores) | EPS (Rs) |
|---|---|---|---|---|---|---|
| Mar 2021 | 1,655 | 803 | 852 | 51% | 154 | 0.26 |
| Jun 2021 | 2,014 | 1,099 | 914 | 45% | 61 | 0.04 |
| Sep 2021 | 1,847 | 1,051 | 796 | 43% | -79 | -0.39 |
| Dec 2021 | 1,796 | 967 | 829 | 46% | -55 | -0.29 |
| Mar 2022 | 1,846 | 1,664 | 182 | 10% | -651 | -1.63 |
| Jun 2022 | 2,063 | 1,249 | 814 | 39% | -102 | -0.47 |
| Sep 2022 | 1,864 | 1,296 | 568 | 30% | -313 | -1.00 |
| Dec 2022 | 1,886 | 1,223 | 663 | 35% | -245 | -0.80 |
| Mar 2023 | 1,730 | 1,889 | -159 | -9% | 257 | 0.86 |
| Jun 2023 | 1,922 | 1,301 | 621 | 32% | -296 | -0.79 |
| Sep 2023 | 2,052 | 1,320 | 732 | 36% | -238 | -0.64 |
| Dec 2023 | 1,947 | 2,310 | -363 | -19% | -1,137 | -3.04 |
| Mar 2024 | 1,997 | 1,811 | 186 | 9% | -398 | -0.99 |
Conclusion
Reliance Power has faced significant challenges but continues to make strides with its various projects.
The company’s future performance will heavily depend on the successful execution of its ongoing projects and overcoming financial hurdles.
The projected Reliance power share price target 2025 reflects a cautious optimism based on current trends and potential future developments.