Reliance Power Ltd Falls to 52-Week Low of Rs.25.27 Amid Market Downturn

Stock Price Movement and Market Context

On 24 Feb 2026, Reliance Power Ltd (Stock ID: 617014) recorded a day’s decline of -1.54%, closing at Rs.25.27, its lowest level in the past year. This drop extends a four-day losing streak during which the stock has fallen by -7.11%. The share price currently trades below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained bearish momentum.

In comparison, the Sensex index also experienced a decline, falling by -513.53 points (-0.91%) to 82,539.01 after a negative opening. Despite this, the Sensex remains 4.39% below its 52-week high of 86,159.02, indicating that the broader market has not mirrored the steep decline seen in Reliance Power’s shares.

Relative Performance and Sector Comparison

Reliance Power’s performance over the last year has been notably weak, with a total return of -30.68%, starkly contrasting with the Sensex’s positive return of 10.83% and the BSE500’s 13.54% gain over the same period. The stock has also underperformed its power sector peers, declining by -1.29% relative to the sector’s movement today.

The 52-week high for Reliance Power was Rs.76.49, highlighting the extent of the stock’s depreciation over the past year.

Fundamental Metrics and Financial Health

Reliance Power’s long-term fundamentals have shown signs of strain. The company’s operating profits have contracted at a compound annual growth rate (CAGR) of -6.46% over the past five years, indicating a decline in core profitability. Additionally, the firm’s ability to service its debt remains limited, with a high Debt to EBITDA ratio of 9.83 times, reflecting significant leverage and potential financial risk.

Profitability metrics also remain subdued. The average Return on Equity (ROE) stands at a modest 0.49%, signalling low returns generated on shareholders’ funds. This is consistent with the company’s overall financial profile, which has led to a recent downgrade in its Mojo Grade from Sell to Strong Sell as of 3 Nov 2025, with a current Mojo Score of 29.0.

Institutional Investor Activity

Institutional participation in Reliance Power has diminished, with a reduction of -0.52% in their stake over the previous quarter. Currently, institutional investors hold 16.32% of the company’s shares. This decline in institutional ownership may reflect a reassessment of the company’s fundamentals by more sophisticated market participants.

Profitability and Operational Highlights

Despite the stock’s weak price performance, Reliance Power has reported positive results for four consecutive quarters. The company’s profit after tax (PAT) for the latest six-month period stands at Rs.112.43 crores, supported by an improved Return on Capital Employed (ROCE) of 6.49% for the half-year. The operating profit to interest coverage ratio for the most recent quarter is 1.63 times, indicating some capacity to meet interest obligations from operating earnings.

Moreover, the company’s ROCE of 4.8% and an enterprise value to capital employed ratio of 0.8 suggest an attractive valuation relative to peers’ historical averages. The price-to-earnings-to-growth (PEG) ratio of 0.3 further indicates that the stock is trading at a discount when considering its profit growth, which has risen by 143.6% over the past year.

Summary of Key Financial Indicators

Reliance Power’s financial profile is characterised by a mixture of challenges and some positive operational metrics. The company’s high leverage and subdued profitability contrast with recent improvements in earnings and coverage ratios. The stock’s valuation metrics suggest it is trading at a discount relative to its historical and peer group benchmarks, despite the ongoing decline in share price.

Over the past year, the stock’s price has fallen by nearly one-third, while profits have more than doubled, highlighting a disconnect between market valuation and earnings performance.

Market and Sector Outlook

The power sector continues to face a complex environment, with Reliance Power’s share price reflecting broader market pressures as well as company-specific factors. The Sensex’s current position below its 50-day moving average, albeit with the 50DMA above the 200DMA, indicates mixed signals for the broader market momentum.

Reliance Power’s market capitalisation grade remains low at 3, consistent with its current valuation and liquidity profile within the power sector.

Conclusion

Reliance Power Ltd’s fall to a 52-week low of Rs.25.27 underscores the challenges faced by the company in maintaining investor confidence amid a difficult financial and market environment. While some operational metrics have improved, the stock’s performance continues to lag behind sector and market benchmarks, reflecting ongoing concerns about its financial strength and growth trajectory.

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