Stock Performance and Market Context
On 27 Feb 2026, Reliance Power Ltd (Stock ID: 617014) recorded a day change of -2.81%, underperforming the Power sector by -2.74%. The stock has been on a downward trajectory for the past two days, losing a cumulative -3.76% over this period. This decline has pushed the share price below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, signalling sustained bearish momentum.
In contrast, the broader market showed mixed signals. The Sensex opened flat but later fell by -412.79 points, or -0.54%, closing at 81,807.69. Notably, the S&P Bse Oil Gas index hit a new 52-week high on the same day, highlighting sectoral divergences within the market.
Long-Term Price and Performance Trends
Reliance Power’s 52-week high was Rs.76.49, indicating a substantial decline of nearly 68% from that peak. Over the past year, the stock has generated a negative return of -29.48%, significantly lagging behind the Sensex’s positive 9.64% return and the BSE500’s 14.23% gain. This underperformance underscores the challenges faced by the company in regaining investor confidence and market share.
Financial Health and Profitability Metrics
The company’s long-term fundamentals remain under pressure. Operating profits have contracted at a compound annual growth rate (CAGR) of -6.46% over the last five years, reflecting subdued earnings growth. Additionally, Reliance Power’s ability to service debt is constrained, with a high Debt to EBITDA ratio of 9.83 times, indicating significant leverage relative to earnings.
Profitability metrics also point to limited returns for shareholders. The average Return on Equity (ROE) stands at a modest 0.49%, signalling low profitability per unit of shareholder funds. Despite these challenges, the company has reported positive results for the last four consecutive quarters, with a higher Profit After Tax (PAT) of Rs.112.43 crores in the latest six months.
Operational Efficiency and Valuation Indicators
Reliance Power’s Return on Capital Employed (ROCE) for the half-year period is 6.49%, the highest recorded recently, while the operating profit to interest coverage ratio for the quarter stands at 1.63 times. These figures suggest some improvement in operational efficiency and interest coverage, albeit from a low base.
The stock’s valuation metrics indicate an attractive entry point relative to peers. With a ROCE of 4.8 and an Enterprise Value to Capital Employed ratio of 0.8, Reliance Power is trading at a discount compared to the average historical valuations of its sector counterparts. The company’s Price/Earnings to Growth (PEG) ratio is 0.3, reflecting a low valuation relative to its profit growth of 143.6% over the past year.
Our current monthly pick, this Mid Cap from Automobile Two & Three Wheelers, survived rigorous evaluation against dozens of contenders. See why experts are backing this one!
- - Rigorous evaluation cleared
- - Expert-backed selection
- - Mid Cap conviction pick
Institutional Investor Activity
Institutional participation in Reliance Power has declined, with a reduction of -0.52% in their stake over the previous quarter. Currently, institutional investors hold 16.32% of the company’s shares. Given their typically rigorous analysis and resource advantage, this decrease may reflect cautious sentiment regarding the company’s prospects.
Market Capitalisation and Mojo Ratings
Reliance Power holds a Market Cap Grade of 3, indicating a mid-tier market capitalisation relative to its sector peers. The company’s Mojo Score stands at 29.0, with a recent downgrade from a Sell to a Strong Sell rating on 3 Nov 2025. This rating reflects the assessment of weak long-term fundamentals and financial stress factors.
Comparative Sector and Market Analysis
While Reliance Power has struggled, the broader Power sector and market indices have shown resilience. The Sensex’s 50-day moving average remains above its 200-day moving average, signalling a generally positive medium-term market trend. However, Reliance Power’s share price remains below all key moving averages, highlighting its relative weakness within the sector.
Holding Reliance Power Ltd from Power? See if there's a smarter choice! SwitchER compares it with peers and suggests superior options across market caps and sectors!
- - Peer comparison ready
- - Superior options identified
- - Cross market-cap analysis
Summary of Key Financial and Market Indicators
Reliance Power’s recent stock price decline to Rs.24.43 marks a significant low point in its 52-week trading range. The company’s financial profile is characterised by subdued profit growth, high leverage, and modest returns on equity. Despite recent improvements in profitability and operational metrics, the stock continues to trade at depressed levels relative to its historical highs and sector averages.
Institutional investor withdrawal and a downgrade to a Strong Sell rating further underscore the challenges faced by the company. Meanwhile, the broader market and sector indices have demonstrated more positive trends, highlighting Reliance Power’s relative underperformance over the past year.
Conclusion
The fall to a 52-week low reflects a combination of financial pressures and market dynamics impacting Reliance Power Ltd. While certain operational metrics have shown improvement, the overall financial health and market sentiment remain cautious. The stock’s valuation discounts and recent profit growth provide context to its current price levels, but the prevailing market conditions and investor behaviour continue to weigh on its performance.
Only Rs. 9,999 - Get MojoOne for 1 Year + 3 Months FREE (60% Off) Start Today
