Shares of Reliance Power Ltd continued their sharp run in Wednesday’s trading session. The stock surged 10 per cent to hit its upper circuit limit of Rs 31.53. At this price, it has gained 26.12 per cent in just three trading days. The counter has moved 31.65 per cent higher on a year-to-date (YTD) basis.
This strong uptrend in the share price came after news agency PTI reported, citing sources, that the company has turned debt-free company on a standalone basis. RPower had a debt of around Rs 800 crore, which has been repaid to banks, the report said.
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The scrip logged heavy trading volume on BSE today. Around 1.5 crore shares were last seen changing hands. The figure was way more than the two-week average volume of 67.42 lakh shares.
Turnover on the counter came at Rs 46.41 crore, commanding a market capitalisation (m-cap) of Rs 12,665.51 crore. There were 42,98,974 buy orders against sell orders of nil shares.
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On technical setup, RPower was trading higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-day and 200-day simple moving averages (SMAs). The counter’s 14-day relative strength index (RSI) came at 71.14. A level below 30 is defined as oversold while a value above 70 is considered overbought.
The company’s stock has a price-to-equity (P/E) ratio of 235.23 against a price-to-book (P/B) value of 1.23. Earnings per share (EPS) stood at 0.12 with a return on equity of 0.52.
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Intermediate hurdle could be seen at Rs 32-34 levels in the short term, said Osho Krishan, Senior Research Analyst – Technical & Derivatives at Angel One. On the lower end, Rs 26-25 is likely to cushion the counter and sacrosanct support lies around 24 sub-zone, he added.
The expected trading range will be between Rs 25 and Rs 32 for a month, said Jigar S Patel, Senior Manager – Technical Research Analyst at Anand Rathi Shares and Stock Brokers.
Reliance Power, formerly known as Reliance Energy Generation Ltd, is a part of the Reliance Anil Dhirubhai Ambani Group. As of March 2024, promoters held a 23.24 per cent stake in the company.
(With inputs from PTI)
