After the portfolio allocation in the Modi cabinet 2024, the market hopes that the power theme will work in the Indian stock market in the next five years. With Anil Ambani's Reliance Power shares skyrocketing for the past five consecutive sessions, some experts predict that Anil Ambani's Reliance Power shares could emerge as the market leader in Modi 3.0.
Experts are very excited about Anil Ambani's Reliance Power shares. This is because the company is completely debt free. According to stock market experts, in Modi 3.0 power companies are working on capex, transmission network, EV and alternative energy sources like solar, wind etc.
Questions should be cleared at the earliest
In such a situation, Anil Ambani may have to face many challenges. The next question is whether Anil Ambani's Reliance will be able to compete with Adani's power company. Which has now emerged as the biggest power house in India. Will Reliance Power be able to compete with Adani and other companies that have come a long way by working on new sources of power and energy? Many such questions are before Anil Ambani, which it is very important to clear and that too at the earliest.
There are no fewer challenges
Challenges that Anil Ambani may have to face. Speaking on this, Avinash Gorakshakar, Head of Research, Profitmart Securities, said in a media report that in every bullish trend we see a leader who outperforms its peers by far and outperforms indices by delivering alpha returns.
There was a time when Mafatlal's stock was sufficient for Dalal Street conditions. After that, the dominance of Mafatlal shares ended with the entry of Reliance Industries and other business groups into the Indian economy. New business groups related to IT and technology sectors in Modi 2.0 focused on power and energy infrastructure. Gautam Adani's power and other businesses also got a lot of help during this period.
Much will depend on how the company performs in the quarter
Going further, he said, since Anil Ambani's Reliance Power has become a debt-free company, the share price can attract long-term investors. However, a lot will depend on how the company performs in the next few quarters. There is no point in being a debt free company. It is very important for the company to be solid and quality. In such a situation, the results of the first quarter of the current financial year could be very important for Reliance Power.
How can Anil Ambani become a market leader?
How Anil Ambani can emerge as a market leader in Modi 3.0? This is an important question. Regarding this, Sandeep Pandey, founder of Baswa Capita and former vice-president of HDFC Bank, has said in a media report that power theme is expected to work in Modi 3.0. While investors will look at companies that have increased their capex and distribution network, the company's order book will also be important.
Reliance Power became a debt-free company
Gautam Adani's Adani Power and other power stocks performed well. As Anil Ambani's Reliance Power becomes a debt-free company, it will need to work faster and more efficiently on these parameters to instill confidence in investors. On the other hand, Anil Ambani may increase his stake in Reliance Power.
Adding to this, power companies working on EVs and alternative power and other sources of energy are expected to do better, says Sandeep Pandey. Gautam Adani and several other power companies are already working on this.
How far can Reliance Power shares go?
Reliance Power's share price on the NSE has risen from Rs 23.50 to Rs 31.30 in the last five consecutive sessions, giving its investors a return of around 33 per cent. Speaking on Reliance Power's stock price outlook, Sumit Bagdia, Executive Director, Choice Broking, said in a media report that Reliance Power's stock has given a fresh breakout at Rs 28 and the stock looks positive on the chart pattern. The stock is facing trouble at Rs 32 per share level. If the company's shares continue to break this level, the share price may touch the Rs 36 level soon.
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