Thu Oct 03 18:48:46 UTC 2024: ## Reliance Power Stock Soars to 52-Week High, But Analysts Suggest Profit Booking

Reliance Power Ltd (RPower) shares have been on a winning streak for the past 15 trading sessions, reaching a fresh 52-week high of Rs 53.65 on Thursday. The stock has surged 81.31% in a month and delivered multibagger returns to investors, rallying 124.01% in 2024.

The recent surge is attributed to the Anil Ambani-led Reliance ADA Group’s partnership with Bhutan’s Druk Holding and Investments Ltd for developing solar and hydropower projects in Bhutan. The partnership focuses on green energy generation and exploring innovative green technologies.

While the stock is currently in an upward trend, analysts are cautioning investors about the potential for profit booking. The stock’s recent run-up has led to it being placed under the short-term ASM (Additional Surveillance Measure) framework by both the BSE and NSE, highlighting its high volatility.

**Analysts’ Views:**

* **Ravi Singh (Religare Broking):** Sees the stock turning positive on daily charts and predicts an upside target of Rs 58 with a stop loss at Rs 50.
* **Kushal Gandhi (StoxBox):** Highlights the strong upward momentum and significant outperformance compared to the Nifty index but advises against buying at current prices due to the potential for profit booking.
* **AR Ramachandran (Sebi-registered research analyst):** Considers the stock bullish but overbought on daily charts, recommending investors to book profits at current levels.
* **Shiju Koothupalakkal (Prabhudas Lilladher):** Identifies further upside potential with targets of Rs 54 and Rs 59 but also recognizes the potential for profit booking, with near-term support at Rs 44.

RPower has a total installed capacity of 5,340 MW, including the world’s largest integrated thermal power plant in Madhya Pradesh. The company also emphasizes that Reliance Infrastructure Ltd and RPower, both part of the Reliance ADAG group, are nearly debt-free.

Despite the positive momentum, analysts remain cautious about the sustainability of the stock’s current surge. They advise investors to consider booking profits at current levels to mitigate potential risks associated with the stock’s volatility.

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