Reliance Power shares crack 53% in six months; what analysts say

Shares of Reliance Power Ltd (RPower) continued to decline on Thursday, slipping 1.38 per cent to close at Rs 33.51. At this level, the stock has nosedived 52.98 per cent over the last six months. The recent drop followed the Enforcement Directorate's (ED's) filing of a supplementary prosecution complaint in a case linked to the SECI bank guarantee.

The complaint was filed against the company, its subsidiaries -- Reliance NU BESS Ltd and Rosa Power Supply Company Ltd -- and Manoj Bhaiyasaheb Pongde, along with other third parties.

RPower, in a BSE filing said: "Vide earlier disclosures dated November 7, 2024 and November 14, 2024 we had informed that the Company, Reliance NU BESS Ltd had lodged a criminal complaint in above matter against the third parties who had arranged the said bank guarantee with Economic Offence Wing of Delhi Police on October 16, 2024, on basis of which First Information Report (FIR) has been registered on November 11, 2024 against the said third parties."

The company added: "It is reiterated that the Company, RPower, its subsidiaries and its employees acted bona-fidely and are victims of a fraud, forgery, cheating and conspiracy committed by the third parties. Based upon the said FIR, ED initiated its investigation. ED allegations have not yet passed through judicial scrutiny and the Company has not been held guilty of any wrong doing. As per law settled by the Supreme Court, company will get an opportunity to put across its case and facts before the court, even before cognizance, so filing of this complaint does not affect the affairs of the company in any manner."

In a separate development, RPower also issued a clarification on reports related to the provisional attachment of assets worth Rs 10,117 crore by the ED for alleged violations of the Prevention of Money Laundering Act (PMLA).

The company said: "Of the total value cited, Rs 8,078 crore pertains to assets of Reliance Communications Ltd (RCom), a company that ceased to be a part of the Reliance Group since 2019-that is, for more than six years. Reliance Communications has been undergoing the Corporate Insolvency Resolution Process (CIRP) and is currently managed entirely by the Resolution Professional, under the supervision of the Hon’ble NCLT and its Committee of Creditors (CoC), led by the State Bank of India (SBI) along with a consortium of banks and lenders."

It also mentioned that Anil D Ambani has not served on the Board of Directors of the company for more than three and a half years.

Technically, a few analysts suggested that Rs 30 acts as a key support level for RPower, while the counter faces near-term resistance in the Rs 36–40 zone.

According to Sebi-registered independent research analyst AR Ramachandran, "The stock is bearish but also oversold on daily charts with next support at Rs 29.92. Investors should buy only if a daily close is above the resistance of Rs 36.11, which could lead to an upside target of Rs 44 in the near term."

Jigar S Patel, Senior Manager – Technical Research at Anand Rathi, noted, "The stock has support at Rs 30 and resistance at Rs 40. A breakout above Rs 40 could pave the way for a move towards Rs 43, with the short-term trading band expected between Rs 30 and Rs 43."