Current Price: ₹71
Technical Analysis:
Cup & Handle Breakout Pattern: The provided chart for RPOWER shows a pattern that resembles a Cup & Handle, and it appears to be currently breaking out or is near a breakout point.
Waiting for Confirmation: Your statement "Waiting for confirmation" is crucial. A confirmed breakout typically involves the price sustaining above the resistance level with strong trading volume.
Immediate Target: Multibagger stock. This is an ambitious long-term target, implying a significant increase from the current price.
Time Frame: 3 to 6 Years. This suggests a long-term investment horizon.
Fundamental Analysis :
Sales (Revenue from Operations): Sales have been volatile over the years. They peaked at ₹10,396 Cr. in Mar 2017, declined to ₹7,562 Cr in Mar 2020, and then recovered to ₹7,583 Cr in Mar 2025.
Operating Profit: Fluctuating, reaching a high of ₹4,506 Cr in Mar 2017 and a low of -₹2,823 Cr in Mar 2020. It has recovered to ₹2,108 Cr in Mar 2025.
Net Profit: The company reported significant losses from Mar 2020 (-₹2,952 Cr) to Mar 2023 (-₹4,068 Cr). Crucially, Reliance Power has reported a positive Net Profit of ₹2,948 Cr in Mar 2025. This marks a significant turnaround from previous years' losses.
EPS in Rs.: Corresponding to the net profit, EPS was negative from Mar 2020 to Mar 2023, but turned positive at ₹9.34 in Mar 2025.
Compounded Sales Growth: TTM: -4%. 3 Years: 0%. 5 Years: -7%. 10 Years: 1%. This indicates recent flat to declining sales growth, despite the recent profit recovery.
Compounded Profit Growth: TTM: 91%. 3 Years: 22%. 5 Years: 7%. 10 Years: %. The TTM and 3-year profit growth figures are very strong, largely due to the turnaround from losses to profit.
Return on Equity (ROE): Last Year: 0%. 3 Years: -10%. 5 Years: -7%. 10 Years: -1%. Despite the recent net profit, the compounded ROE remains negative, which suggests that the company is still grappling with past accumulated losses impacting equity.
Key Fundamental Observations:
Turnaround in Profitability: The most significant fundamental development is the sharp turnaround from consistent losses to a substantial positive Net Profit of ₹2,948 Cr and a positive EPS of ₹9.34 in March 2025.
Valuation: Based on the current price of ₹71 and the FY25 EPS of ₹9.34, the trailing P/E ratio would be approximately 7.6. This is a very low P/E if the profit is sustainable and represents a significant re-rating opportunity if the turnaround holds.
Debt: While not explicitly detailed in the provided images, Reliance Power has historically carried a high debt load. The recent profit might be linked to debt restructuring or asset sales, which could significantly improve its financial health.
Sales Growth: Despite the strong profit recovery, the compounded sales growth figures for the last 1, 3, and 5 years are negative or flat, indicating that the profit recovery might be driven more by cost efficiencies, debt reduction, or non-operating income rather than core revenue expansion.
Corporate Actions & Latest News:
News related to RPOWER would predominantly focus on its financial restructuring efforts, debt resolution, asset sales, and the operational performance of its power plants. The recent positive financial results would be a major highlight. Any new power projects or significant Power Purchase Agreements (PPAs) would also be key news.
Order Book: For a power generation company, the "order book" primarily refers to its Power Purchase Agreements (PPAs). The stability and duration of these agreements are crucial for revenue visibility.
Overall Assessment & Viability of Target:
The technical Cup & Handle breakout pattern is generally bullish, and the recent shift to profitability is a major positive fundamental development for Reliance Power. The low P/E ratio, based on the latest EPS, could indicate that the market has not yet fully priced in the turnaround.
However, the "Multibagger" target within 3-6 years is still highly aggressive and depends on several critical factors:
Sustainability of Profitability: The company must demonstrate consistent and growing profits over multiple quarters and years, proving that the Mar 2025 profit is not a one-off event.
Debt Management: Continued success in reducing and managing its historical debt burden is crucial.
Core Business Growth: Improving sales growth in addition to profit growth will be vital for a sustained upward trajectory.
Market Re-rating: The market needs to be convinced of the long-term viability and growth prospects to assign a higher valuation multiple.
While the current technical and recent fundamental data show promise, the "Multibagger" target requires an exceptional and sustained turnaround in all aspects of the business.
Disclaimer: This analysis is for informational purposes only and does not constitute investment advice. Investing in turnaround stories and highly volatile stocks carries significant risks, and considerable capital loss is possible. Always conduct your own exhaustive research, assess the company's current and future financial viability, understand all associated risks, and consult with a qualified financial advisor before making any investment decisions.
Technical Analysis:
Cup & Handle Breakout Pattern: The provided chart for RPOWER shows a pattern that resembles a Cup & Handle, and it appears to be currently breaking out or is near a breakout point.
Waiting for Confirmation: Your statement "Waiting for confirmation" is crucial. A confirmed breakout typically involves the price sustaining above the resistance level with strong trading volume.
Immediate Target: Multibagger stock. This is an ambitious long-term target, implying a significant increase from the current price.
Time Frame: 3 to 6 Years. This suggests a long-term investment horizon.
Fundamental Analysis :
Sales (Revenue from Operations): Sales have been volatile over the years. They peaked at ₹10,396 Cr. in Mar 2017, declined to ₹7,562 Cr in Mar 2020, and then recovered to ₹7,583 Cr in Mar 2025.
Operating Profit: Fluctuating, reaching a high of ₹4,506 Cr in Mar 2017 and a low of -₹2,823 Cr in Mar 2020. It has recovered to ₹2,108 Cr in Mar 2025.
Net Profit: The company reported significant losses from Mar 2020 (-₹2,952 Cr) to Mar 2023 (-₹4,068 Cr). Crucially, Reliance Power has reported a positive Net Profit of ₹2,948 Cr in Mar 2025. This marks a significant turnaround from previous years' losses.
EPS in Rs.: Corresponding to the net profit, EPS was negative from Mar 2020 to Mar 2023, but turned positive at ₹9.34 in Mar 2025.
Compounded Sales Growth: TTM: -4%. 3 Years: 0%. 5 Years: -7%. 10 Years: 1%. This indicates recent flat to declining sales growth, despite the recent profit recovery.
Compounded Profit Growth: TTM: 91%. 3 Years: 22%. 5 Years: 7%. 10 Years: %. The TTM and 3-year profit growth figures are very strong, largely due to the turnaround from losses to profit.
Return on Equity (ROE): Last Year: 0%. 3 Years: -10%. 5 Years: -7%. 10 Years: -1%. Despite the recent net profit, the compounded ROE remains negative, which suggests that the company is still grappling with past accumulated losses impacting equity.
Key Fundamental Observations:
Turnaround in Profitability: The most significant fundamental development is the sharp turnaround from consistent losses to a substantial positive Net Profit of ₹2,948 Cr and a positive EPS of ₹9.34 in March 2025.
Valuation: Based on the current price of ₹71 and the FY25 EPS of ₹9.34, the trailing P/E ratio would be approximately 7.6. This is a very low P/E if the profit is sustainable and represents a significant re-rating opportunity if the turnaround holds.
Debt: While not explicitly detailed in the provided images, Reliance Power has historically carried a high debt load. The recent profit might be linked to debt restructuring or asset sales, which could significantly improve its financial health.
Sales Growth: Despite the strong profit recovery, the compounded sales growth figures for the last 1, 3, and 5 years are negative or flat, indicating that the profit recovery might be driven more by cost efficiencies, debt reduction, or non-operating income rather than core revenue expansion.
Corporate Actions & Latest News:
News related to RPOWER would predominantly focus on its financial restructuring efforts, debt resolution, asset sales, and the operational performance of its power plants. The recent positive financial results would be a major highlight. Any new power projects or significant Power Purchase Agreements (PPAs) would also be key news.
Order Book: For a power generation company, the "order book" primarily refers to its Power Purchase Agreements (PPAs). The stability and duration of these agreements are crucial for revenue visibility.
Overall Assessment & Viability of Target:
The technical Cup & Handle breakout pattern is generally bullish, and the recent shift to profitability is a major positive fundamental development for Reliance Power. The low P/E ratio, based on the latest EPS, could indicate that the market has not yet fully priced in the turnaround.
However, the "Multibagger" target within 3-6 years is still highly aggressive and depends on several critical factors:
Sustainability of Profitability: The company must demonstrate consistent and growing profits over multiple quarters and years, proving that the Mar 2025 profit is not a one-off event.
Debt Management: Continued success in reducing and managing its historical debt burden is crucial.
Core Business Growth: Improving sales growth in addition to profit growth will be vital for a sustained upward trajectory.
Market Re-rating: The market needs to be convinced of the long-term viability and growth prospects to assign a higher valuation multiple.
While the current technical and recent fundamental data show promise, the "Multibagger" target requires an exceptional and sustained turnaround in all aspects of the business.
Disclaimer: This analysis is for informational purposes only and does not constitute investment advice. Investing in turnaround stories and highly volatile stocks carries significant risks, and considerable capital loss is possible. Always conduct your own exhaustive research, assess the company's current and future financial viability, understand all associated risks, and consult with a qualified financial advisor before making any investment decisions.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.