Anil Ambani-owned power multibagger penny stock under Rs 40 hits upper circuit & 52-week high on September 23
The stock gave multibagger returns of 145 per cent from its 52-week low of Rs 15.53 whereas BSE Sensex Index is up by 29 per cent in the same period.
Reliance Power Limited, a prominent player in the Indian energy sector, has achieved a significant milestone by settling its outstanding obligations of Rs 3872.04 crore towards corporate guarantees for Vidarbha Industries Power Limited (VIPL). This development has not only resolved longstanding disputes with CFM Asset Reconstruction Private Limited but has also strengthened Reliance Power's financial position.
Key Highlights:
- Debt Settlement: Reliance Power has successfully paid off its entire debt to lenders, including banks and financial institutions.
- Dispute Resolution: The company has resolved all outstanding disputes with CFM Asset Reconstruction Private Limited.
- Strengthened Balance Sheet: Reliance Power's net worth has increased to Rs11,155 crore as of June 30, 2024, on a consolidated basis.
- Strategic Move: The settlement of VIPL's obligations is a strategic move by Reliance Power to mitigate potential risks and improve its overall financial health.
Implications for Investors:
This positive development is likely to be welcomed by investors as it signals a significant improvement in Reliance Power's financial stability. The company's ability to resolve its debt obligations and settle disputes demonstrates its commitment to responsible financial management. Investors may view this as a favourable indicator of the company's prospects.
Looking Ahead:
Reliance Power's focus now shifts towards capitalizing on its strengthened financial position. The company is well-positioned to explore new growth opportunities and expand its operations in the energy sector. As the Indian economy continues to grow, Reliance Power's expertise and financial stability could position it to play a pivotal role in meeting the country's increasing energy demands.
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Anil Ambani owned Reliance Power Ltd, on Wednesday, the stock ended the trading session at Rs 38.16 per share on the BSE from its previous closing of Rs 36.35 per share getting locked at the 5 per cent upper circuit. The stock has been hitting 5 per cent upper circuits for the 5th consecutive trading session. The stock also made a fresh 52-week high of Rs 38.16 per share while its 52-week low is Rs 15.53 per share.
With a market cap of over Rs 15,000 crore and 40.9 lakh shareholders, Reliance Power operates a total capacity of 5,900 MW. This includes the 3,960 MW Sasan Ultra Mega Power Project (UMPP) and the 1,200 MW Rosa Thermal Power Plant in Uttar Pradesh. The Sasan UMPP is one of the largest integrated coal-based power plants in the world, showcasing Reliance Power's significant contribution to India's energy sector. The company's debt-free status and enhanced operational efficiency have attracted positive attention from investors.
The stock gave multibagger returns of 145 per cent from its 52-week low of Rs 15.53 whereas BSE Sensex Index is up by 29 per cent in the same period. Investors should keep an eye on this Small-Cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.