Reliance Power Ltd Falls 8.72% Amidst Fresh 52-Week Lows and Heavy Volume

23 February 2026: Stock Hits New 52-Week Low Amid Market Strength

Reliance Power Ltd’s stock price declined to Rs.25.91, down 1.30% on 23 February, marking a fresh 52-week low of Rs.25.8 during the session. This decline came despite the Sensex rising 0.39% to 36,817.86, highlighting the stock’s underperformance relative to the broader market. The stock’s three-day losing streak culminated in a cumulative 5.65% drop, reflecting persistent bearish momentum. The share price traded below all key moving averages, signalling continued technical weakness. Institutional investors reduced their holdings by 0.52% in the previous quarter, now holding 16.32%, indicating waning confidence.

24 February 2026: Further Decline Amid Broader Market Weakness

On 24 February, Reliance Power’s stock price fell further to Rs.25.44, a 1.81% decline, setting another 52-week low at Rs.25.27. This drop occurred alongside a broader market downturn, with the Sensex falling 0.78% to 36,530.09. The stock’s four-day consecutive decline resulted in a 7.11% loss over this period, underperforming its sector by 1.29%. Despite the negative price action, the company reported positive earnings growth over recent quarters, with a six-month PAT of Rs.112.43 crores and a ROCE of 6.49%, suggesting some operational improvements amid the downtrend.

26 February 2026: Heavy Volume and Continued Downtrend

Reliance Power emerged as one of the most actively traded stocks on 26 February, with a volume exceeding 70 lakh shares and a traded value of approximately Rs.17.61 crores. Despite this surge in activity, the stock hit a fresh 52-week low of Rs.24.9, declining 1.21% on the day. The elevated volume combined with falling prices indicates distribution, where selling pressure outweighs buying interest. The stock remained below all key moving averages, reinforcing the bearish technical outlook. The company’s MarketsMOJO rating was downgraded to Strong Sell with a Mojo Score of 29.0, reflecting deteriorating fundamentals and market sentiment.

27 February 2026: Week Closes at Fresh 52-Week Low Amid Market Downturn

The stock closed the week at Rs.23.96 on 27 February, down 5.03% on the day and marking another 52-week low. This decline came amid a broader market downturn, with the Sensex falling 1.16% to 36,322.56. Reliance Power underperformed its sector by 2.74%, continuing its downward trajectory. The stock traded below all major moving averages, confirming sustained bearish momentum. Despite the price weakness, the company’s profitability metrics showed improvement, with a 157.40% increase in PAT over nine months and a ROCE of 6.49%. However, high leverage remains a concern, with a Debt to EBITDA ratio of 9.83 times.

Daily Price Comparison: Reliance Power Ltd vs Sensex

Key Takeaways: Positive Signals and Cautionary Indicators

Positive Aspects: Despite the steep price decline, Reliance Power has reported four consecutive quarters of positive earnings growth, with a six-month PAT of Rs.112.43 crores and a nine-month PAT growth of 157.40%. The company’s ROCE has improved to 6.49%, and the operating profit to interest coverage ratio stands at 1.63 times, indicating some easing of financial stress. Valuation metrics such as an enterprise value to capital employed ratio of 0.8 and a PEG ratio of 0.3 suggest the stock is trading at a discount relative to earnings growth.

Cautionary Signals: The stock’s persistent underperformance relative to the Sensex and sector indices, hitting multiple 52-week lows, highlights ongoing market scepticism. The high Debt to EBITDA ratio of 9.83 times signals elevated leverage and financial risk. Institutional investors have reduced their holdings, and the downgrade to a Strong Sell rating with a Mojo Score of 29.0 underscores deteriorating fundamentals. Technical indicators remain bearish, with the stock trading below all major moving averages and heavy volume suggesting distribution rather than accumulation.

Conclusion: A Challenging Week for Reliance Power Ltd

Reliance Power Ltd’s stock endured a difficult week, falling 8.72% and hitting fresh 52-week lows amid a broader market that was relatively stable. The combination of high leverage, subdued long-term profitability, and reduced institutional participation has weighed heavily on the stock’s performance. While recent earnings improvements and attractive valuation metrics offer some positive context, the prevailing technical weakness and strong sell rating reflect a cautious market outlook. Investors should remain vigilant and monitor both fundamental and technical developments closely as the stock navigates this challenging phase.

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