Reliance Power, a company owned by Dhirubhai Ambani’s son Anil Ambani, is up by 35% in 8 days after hitting an upper circuit on March 13. Let us see the reasons for it.
4 Reasons Why Reliance Power Is UP
1. Debt Reduction
Reliance Power has reportedly paid off its debts to major banks like ICICI Bank. Axis Bank and DBS Bank. Only a working capital loan is left on its books, which was borrowed from IDBI Bank. This reduces the significant financial burden on the company and makes it more financially stable. Investors see this as a turnaround point for the company and are taking it as a positive sign.
2. Capital Infusion
There’s news going around in the market that there’s been an infusion of fresh capital into the company. This injection of funds can be used for purposes of expansion, research, and development, or even paying off debts. This is a positive sign and good news for investors, and it has contributed to the rise in stock price.
3. Price Movement
Over the past week, Reliance Power’s stock price has been on an uptrend, consistently hitting the upper circuit, and has been rising sharply. Its share price started to rise around Rs. 20.40 per share and has reached Rs. 27.60 per share, representing a significant increase of around 35%. This kind of upward movement attracts investors’s attention and can increase buying volume.
4. Expert’s recommendation
Stock market experts and analysts are advising people to hold onto their shares of reliance power and have predicted that it can grow even more. They have set a target of Rs. 34 per share if the stock breaks the Rs. 30 mark on a closing basis. They have also advised setting up a stop-loss of Rs. 22 per share in case things don’t go as planned.
Disclaimer: The views and recommendations above are those of individual analysts or brokerage companies, not TheStockMarketLive. We advise investors to check with certified experts before making any investment decisions.TheStockMarketLive. We advise investors to check with certified experts before making any investment decisions.
