Reliance Infrastructure shares surge over 10% on defence partnership buzz

Shares of Reliance Infrastructure Ltd soared 10.46 per cent on Friday, touching an intraday high of Rs 313, following reports of a strategic tie-up involving its subsidiary.

Reliance Defence, a unit promoted by Anil Ambani's RInfra, is said to have entered into a partnership with Rheinmetall AG, a leading German arms manufacturer. The collaboration reportedly aims to produce ammunition in Ratnagiri, Maharashtra.

Both BSE and NSE have sought clarification from the company regarding the reported partnership. A response from RInfra is still awaited at the time of writing this story.

Technically, 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 72.83. A level below 30 is defined as oversold while a value above 70 is considered overbought.

"Support will be at Rs 270 and resistance at Rs 327. A decisive move above Rs 327 level may trigger a further upside towards Rs 335. The expected trading range will be between Rs 270 and Rs 335 for the short term," said Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi.

RInfra is bullish on daily charts but also overbought with next resistance at Rs 329, Sebi-registered independent research analyst AR Ramachandran suggested, adding that investors should consider booking profits as a daily close below support of Rs 282 could lead to a downward target of Rs 240 in the near term.

As per BSE, the company's stock has a negative price-to-earnings (P/E) ratio of 5.05 against a price-to-book (P/B) value of 1.48. Earnings per share (EPS) stood at (-)60.46 with a return on equity (RoE) of (-)29.27. According to Trendlyne data, RInfra has a one-year beta of 1.5, indicating high volatility.

RInfra is engaged in the business of providing EPC services, power distribution in Delhi and also in the implementation, operation and maintenance of several projects in defence sector and infrastructural areas such as metro, toll roads and airports. It has also executed the Mumbai Metro Line One project. As of March 2025, promoters held a 16.50 per cent stake in the company.