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Modi 3.0: Can Anil Ambani’s Reliance Power follow Gautam Adani’s power business to emerge as the next market leader?
3.0 Mode: After the portfolio allocation in the Modi 2024 cabinet, the Marketplace expects the power theme to play out in the Indian stock market over the next five years. As Anil Ambanni Power of confidence share price has soared in the last five consecutive sessions, some observers are guessing whether shares of Anil Ambani’s Reliance Power would emerge as the market leader in Modi 3.0. They are bullish on shares of Anil Ambani’s Reliance Power as the company has become completely debt free. According to stock market Observers, amid the buzz around the energy topic in Modi 3.0, companies are working on Capex, transmission networks, EVs and alternative energy sources like solar, wind, etc. Anil Ambani will soon have to face these challenges to compete with his peers.
Challenges for Anil Ambani
Talking about the challenges that Anil Ambani may have to face, Avinash Gorakshkar, Head of Research at Profitmart Securities, said, “In every uptrend, we have seen a leader who leaves his peers behind and outperforms the indices by delivering an alpha return. There was a time when Mafatlal’s shares were enough to dictate terms on Dalal Street. However, the dominance of Mafatlal’s shares ended with the emergence of Reliance Industries and other business groups in the Indian economy. Reliance Industries on Dalal Street was held back by other new business groups belonging to the IT and technology segments In Modi 2.0, we saw a particular focus on energy and energy infrastructure, which helped Gautam Adani’s energy and other businesses.”
“As Anil Ambani’s Reliance Power has become a debt-free company, the share price may attract risk-oriented long-term investors. However, a lot will depend on the company’s performance in the coming quarters. Being a debt-free company does not This does not mean a quality company with strong fundamentals, so it is crucial to remain vigilant about what kind of guidance Reliance Power offers in the upcoming Q1 2024 results,” Gorakshkar said.
On how Anil Ambani can emerge as a market leader in Modi 3.0, Sandeep Pandey, founder of Basav Capita and former vice-chairman of HDFC Bank, said, “In Modi 3.0, the energy theme is expected to work. However, investors would look at those stocks that have increased their Capex and distribution network Furthermore, the company’s order book would also be important as it indicates the possibility of potential and sustained growth of Gautam Adani’s Modi 2.0 business. Adani Power and other energy stocks generated colossal returns as they positioned well on these parameters. As Anil Ambani’s Reliance Power became a debt-free company, it would need to work on these parameters faster and more efficiently. To bring confidence to investors, Anil Ambani may increase his stake in Reliance Power along with the above-mentioned measures.”
Sandeep Pandey added that energy companies working on electric vehicles and other alternative power and energy sources are expected to outperform. Gautam Adani and some other energy companies are already working on this.
Reliance Power stock target price
In the last five consecutive sessions, Reliance Power’s share price on NSE has risen from ₹23.50 to ₹31.30 each, giving a return of around 33 percent to its positional investors.
Talking about Reliance Power share price outlook, Sumeet Bagadia, Executive Director, Choice Broking, said, “Reliance Power shares have made a fresh breakout at ₹28, and the stock looks positive on the chart pattern. The scrip is facing a hurdle at the level of ₹32 each. Once it decisively breaks this resistance, we can expect the stock to touch the ₹36 per share mark soon.”
Disclaimer: The opinions and recommendations above are those of individual analysts, experts and brokers, not Mint. We advise investors to consult certified experts before making any investment decision.
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