Reliance Power shares climb 10% in 5 sessions; is it time to book some profits?

Shares of Reliance Power Ltd slipped in Monday's trade and were last seen trading 3.12 per cent lower at Rs 50.30. Despite this drop, the stock has moved up 9.74 per cent in just five trading sessions and 11.58 per cent in the past one month. 

RPower recently partnered with Bhutan's Druk Holding and Investments (DHI) to develop India's largest solar power project in a Rs 2,000 crore joint venture. The 500 megawatt (MW) project will be developed under a 50:50 partnership through a Build-Own-Operate (BOO) model.

"The landmark solar investment in Bhutan underscores Reliance Group's strategic focus on expanding its renewable energy portfolio, while reinforcing its long-term commitment to strengthening India-Bhutan economic cooperation. Reliance Power’s total clean energy pipeline stands at 2.5 gigawatts peak (GWp) in the solar segment, making it India’s largest player in the integrated solar and Battery Energy Storage System (BESS) segment," it stated.

Following the recent price increase, an analyst recommends partially booking profits in this stock, which is suitable only for investors with a high-risk appetite. 

Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, cautioned that the stock has been a wealth destructor in the past and is only suited for investors with a high-risk appetite.

Technically, Jigar S Patel, Senior Manager (Technical Research Analyst at Anand Rathi), said, "Investors can consider partial profit booking and the expected trading range will be between Rs 46 and Rs 53 for the short term." 

Support for the counter will be at Rs 48 and resistance at Rs 53, Patel also said, adding that a decisive move above Rs 53 level may trigger a further upside towards Rs 56.

The scrip traded higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-day and 200-day simple moving averages (SMAs). Its 14-day relative strength index (RSI) came at 69.32. A level below 30 is defined as oversold while a value above 70 is considered overbought.

As per BSE, the company's stock has a price-to-earnings (P/E) ratio of 314.38 against a price-to-book (P/B) value of 2.20. Earnings per share (EPS) stood at 0.16 with a return on equity (RoE) of 0.71. According to Trendlyne data, RPower has a one-year beta of 1.4, indicating high volatility.

Promoters held a 24.98 per cent stake in the Anil Ambani-led entity as on May 7, 2025.