Reliance Power share price target 2023, 2024, 2025, and 2030: In this article, you will learn about Reliance Power share price target 2023, 2024, 2025, and 2030, along with the fundamentals and financials of the company.
For every investor, it is important to know about the company in which they are investing, to get the confidence to hold the stock for the long term. To make it clear for you, in this article we have mentioned Reliance Power share price target 2023, 2024, 2025, and 2030, along with the fundamentals of the company.
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Reliance Power Share Price Target 2023, 2024, 2025, 2030
Reliance Power Limited is a part of the Reliance Group, one of India’s largest business houses. The group operates across multiple sectors, including telecommunications, financial services, media and entertainment, infrastructure, and energy. The energy sector companies include Reliance Infrastructure and Reliance Power.
Reliance Power has been established to develop, construct and operate power projects both in India as well as internationally. The Company on its own and through its subsidiaries has a large portfolio of power generation capacity, both in operation as well as capacity under development.
The power projects are going to be diverse in terms of geographic location, fuel type, fuel source, and off-take, and each project is planned to be strategically located near an available fuel supply or load center. The company has close to 6000 MW of operational power generation assets. The projects under development include three coal-fired projects to be fueled by reserves from captive mines and supplies from India and elsewhere; one gas-fired project, and twelve hydroelectric projects, six of them in Arunachal Pradesh, five in Himachal Pradesh, and one in Uttarakhand.
Reliance Power’s project portfolio also includes the 3,960 MW Sasan Ultra Mega Power Project (Madhya Pradesh). UMPPs are a significant part of the Indian government’s initiative to collaborate with power generation companies to set up 4,000 MW projects to ease the country’s power deficit situation.
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Business Areas
- Power projects.
- Coal based projects.
- Solar power projects.
- Wind power projects.
- Gas based projects.
- Hydroelectricity projects.
Share holding pattern
Strengths of Reliance Power
The strengths of a firm can be positive qualities that help the company to maintain goodwill in the market or give it a competitive advantage. Mentioned below are some of Reliance Power’s strengths:
- Huge Customer Base: It has a great market influence in the domestic business which makes it a huge strength for Reliance Power.
- Quality: The quality of Reliance Power is quite strong and it provides a quality manual for the entire organization.
- Research and Development: It is a strong, innovative and creative advanced team for research and development which is a pro point. They invest 2.5% of their annual turnover in the R&D of Reliance Power.
- Continuous Profits: This is a great strength for Reliance Power since it has been getting huge profits and dividends for years.
- Support From Collaborators: Reliance Power has been getting constant and huge support from collaborators that helps for modern technologies and transform them to suit it according to Indian conditions.
- Strong Base in Engineering: Since it has a strong base in engineering, it is stable in the market and industrial relationship. It is the largest power generator and works on various power generation projects like coal based thermal projects, gas based, shelved based etc.
Weaknesses of Reliance Power
Weaknesses are negative aspects and attributes which have little control over. These are the areas where the business needs to improve to remain competitive.
- Longer Delivery Cycles: Its products take more time to deliver than its international competitors which can be a huge con according to the customer base.
- Less Marketing Manufacturer: Reliance Power lacks marketing manufacture which leads to inadequate supply.
- Criticism: The project at Rampal of the coal power plant is criticized a lot for impacting adverse effects to the environment since it is near to the Sundarbans mangrove forest.
- The Inability of Certain Activities: Inability of certain activities such as providing suppliers credit, soft loans and financing power projects.
- Shortage of Technical & Financial Resources: The business has experienced a shortage of technical and financial resources, which has reduced its ability to grow its service locally and globally.]
Opportunities for Reliance Power
Opportunities are places where the company can find growth, profit, and market share possibilities.
- Accelerated Technological Innovations & Advances: Rapid technical advancements are increasing industry productivity, allowing suppliers to provide a wider range of products and services. This may enable Reliance Power to expand its product portfolio dramatically.
- Local Collaboration: Partnerships with local firms can help Reliance Power expand its market share in foreign markets. Local firms have a local experience, but Reliance Power can contribute global procedures and execution skills.
- Increasing Government Regulations: The Electric utility business is becoming increasingly regulated, making it difficult for unorganized firms to compete. Reliance Power may be able to expand its client base as a result of this.
- Demand for Power Domain: There is a huge power domain to produce more equipment. This provides a huge opportunity for Reliance Power.
- Ageing Power Plants: Since it has more old and required services and is in the market for a long time it has faster machinery and more market visibility compared to its competitors.
Threats to Reliance Power
These are the factors that have the potential to harm an organization. Threats are uncontrollable external factors that might overcome or damage the strength and opportunities.
- Growing Technological Knowledge of Local Businesses in the Export Industry: For Reliance Power, one of the most significant risks of partnering with local firms in the export market is the risk of losing intellectual property rights. In emerging nations, particularly in China, the intellectual property rights framework is weak.
- Competitors are Catching Up with Product Development: Even though Reliance Power continues to dominate the Electric utility market in product innovation. It is up against severe competition from both foreign and domestic opponents.
- Urban Market Saturation and Rural Market Stagnation: This tendency is a continuing problem for Reliance Power in the Electric utility business. One of the causes is that product acceptance is delayed in the rural market. Second, because of the wide distances and lack of infrastructure, serving rural clients is more expensive for Reliance Power than serving urban ones.
- Shortage of Trained Human Resources: Due to significant staff turnover and a growing reliance on new solutions, the firm name may encounter skilled human resource issues in the future.
- Institutional Distrust and the Possibility of Legal Action Against Reliance Power: Due to the difficulty of enforcing WTO norms and legislation in diverse markets. Legal proceedings have become both costly and time-consuming. It may cause Reliance Power to spend less in emerging regions, resulting in slower development.
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Reliance Power share price target 2023
Reliance Power has given multi-bagger returns to its investors in the past 1 year, the company has given 390% return in just 1 year and 52% in the past 6 months. Reliance Power is performing exceptionally well for the past 1 year. The company is strengthening its position in the power sector and also in its core business segments. Reliance Power share price target for 2023 is Rs 17.
| Reliance Power share price target 2023 |
| Rs 17 |
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Reliance Power share price target 2024
The government of India has been taking several initiatives to address the challenges faced by the power sector including implementation of measures proposed by the High-Level Empowered Committee (HLEC) to address the issues of stressed thermal power projects, Market-based Economic Dispatch (MBED) to move towards a “One Nation, One Grid, One frequency, One Price” framework with a view to achieve optimal scheduling and dispatch of generating stations and to achieve system cost savings.
Electricity Amendment Bill 2021 aimed at giving a choice of supplier to consumers, privatization of Distribution Companies (DISCOMs) in Union Territories, and revamped reforms-based result-linked power distribution sector scheme to support DISCOMs for Infrastructure creation including pre-paid smart metering, feeder separation, up-gradation of systems, etc, tied to financial improvements.
Besides, it continues to focus on renewable energy (RE) having set an ambitious target of 450 GW RE capacity by 2030. While these measures are expected to benefit the sector in the long term, their effective implementation holds the key. As the power sector plays a major role in growing economy countries, the government of India is taking big steps towards the improvement of the power sector, by considering all these factors, the Reliance Power share price target for 2024 is Rs 26.
| Reliance Power share price target 2024 |
| Rs 26 |
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Reliance Power share price target 2025
The government of India provided much-needed support for the power sector by announcing a special economic package of 90,000 crores funded by PFC and REC to cover the payables of DISCOMs, which was subsequently enhanced to 1,35,000 crore. Liquidity infusion through this package benefitted the entire electricity value chain as Generation and Transmission companies realized long pending dues from DISCOMs which helped them sustain their operations.
The total amount of loan sanctioned under the scheme was 1,35,000 crore, which was supposed to be disbursed in two tranches. Total disbursement went up to 75,000 crores till March 2021 end, while the balance is expected to be disbursed within the next few months.
Further, the Reserve Bank of India (RBI) allowed banks to grant a moratorium period for all principal and interest payments and permitted to defer recovery of interest applied on working capital facilities during the six-month period of 1st March 2020 to 31st August 2020. In order to provide relief to generating companies to meet liquidity challenges, Coal India Limited allowed the facility of a usance letter of credit for payment of coal. By considering the support of the Indian government to the power sector, Reliance Power performance in the recent financial year, Reliance Power share price target for 2025 is Rs39.
| Reliance Power share price target 2025 |
| Rs 39 |
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Reliance Power share price target 2030
On the demand side, India’s per capita power consumption is at 1208 kWh/year (as of March 2020), which is about one-third of the world’s average 3500 kWh/year consumption. Growing population along with increasing electrification and per-capita usage and expansion in economic activities are expected to drive growth in power consumption. In FY 2020-21, peak power demand growth moderated to 3.5 percent whereas in energy terms there was a contraction by -1.2 percent.
With the industrial and commercial sectors together accounting for nearly 50% of the country’s electricity consumption, a decline in their consumption had negatively impacted the overall demand. With the gradual and calibrated resumption of economic activity, the electricity demand has shown signs of revival in these segments.
Although there has been a year-on-year increase in installed power generation capacity (382 GW in FY21 vs 370 GW in FY20), it falls well short of the set target. There has been a progressive shift towards renewable sources (mainly wind & solar).
In the last 5 years, the share of renewable energy in the installed capacity has increased from 14% (39 GW in March 2015) to 25% (94.5 GW in March 2021). The low demand scenario, especially in the first half of the year, impacted the performance of thermal power stations as the PLF stood at 53.4% for FY 2020-21.
Power demand in India has grown at a CAGR of more than 4.4 percent in the last 5 years. Growth in electricity demand has been met by the rapid capacity addition of thermal projects in the earlier years. However, the quick addition of renewable capacity in the last few years and lower than envisaged growth in demand for electricity, has led to lower PLF of thermal power plants. PLF of coal-fired thermal power plants stood at 53.4% for FY 2020-21.
However, the thermal power plants would continue to remain the mainstay for meeting the baseload requirements considering the intermittent nature of supply from renewable sources. By considering all the above factors, support from the government, and the performance of Reliance Power. Reliance Power share price target for 2030 is Rs 154.
| Reliance Power share price target 2030 |
| Rs 154 |
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Reliance Power share price target 2023, 2024, 2025, and 2020
| Year | Share Price Target |
|---|---|
| Reliance Power share price target 2023 | Rs 17 |
| Reliance Power share price target 2024 | Rs 26 |
| Reliance Power share price target 2025 | Rs 39 |
| Reliance Power share price target 2030 | Rs 154 |
Frequently asked questions
Is Reliance Power share good to buy?
Reliance Power share is high risk and high reward. If you are an investor, who can take risks then you can buy Reliance power share. But if you are a safe investor then I would suggest you pick some other companies in the power sector.
What is the future of Reliance Power share price?
Power demand in India has grown at a CAGR of more than 4.4 percent in the last 5 years. The government of India provided much-needed support for the power sector by announcing a special economic package of 90,000 crores. Reliance Power performed well in recent years. If the company is able to continue the same, Reliance Power share price will rally in the future.
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