Penny Stock Under Rs 50: Reliance Group Backed & Anil Ambani Owns Power Company's Subsidiary Signs Rs 10,000 Crore PPA And Secures Asia’s Largest 1,395 MW Solar-Battery Project
In the last 12 months, the stock has gained 50 per cent while in the last 5 years it has logged multibagger returns of 1,732 per cent.
Reliance Nu Sunech, a subsidiary of Reliance Power Limited, has entered into a significant long-term Power Purchase Agreement (PPA) with the Solar Energy Corporation of India (SECI) for a duration of twenty-five years. This agreement marks a pivotal moment as Reliance Nu Sunech is set to develop Asia's largest integrated solar and battery energy storage system (BESS) project. The project is expected to attract an investment of up to ₹10,000 crore.
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Reliance Nu Sunech will be responsible for delivering 930 MW of solar power along with a 465 MW/1,860 MWh BESS at a competitive fixed tariff of ₹2.79 per unit for a period of twenty-five years. This tariff will be applicable for the initial twenty-five years of the PPA. The project was awarded through a competitive bidding process that witnessed participation from five leading energy companies vying for a total of 2,000 MW of Inter-State Transmission System (ISTS)-connected solar projects and 1,000 MW/4,000 MWh of BESS capacity.
Reliance Power successfully submitted a Performance Bank Guarantee (PBG) amounting to ₹378 crore to SECI. The entire bidding process, from the reverse auction to the issuance of the Letter of Award (LoA) and the signing of the PPA, was completed in less than five months.
In the Quarterly Results of December 2024, the company reported a revenue of Rs 1,852.84 crore, reflecting a YoY decline of 4.68 per cent compared to Rs 1,943.83 crore in December 2023. The operating profit stood at Rs 491.92 crore, compared to an operating loss of Rs 363.63 crore in the same quarter last year, marking a negative growth of 235.28 per cent. The profit after tax (PAT) came in at Rs 41.95 crore, showing a YoY growth of -103.69 per cent from a loss of Rs 1,136.75 crore in December 2023.
In FY24, the company posted a revenue of Rs 7,892.60 crore, registering a 5.04 per cent growth compared to Rs 7,513.91 crore in FY23. The net profit for the year stood at a loss of Rs 2,068.38 crore, higher than the loss of Rs 470.77 crore in the previous financial year, reflecting a negative growth of 339.36 per cent.
Reliance Power has been established to develop, construct and operate power projects both in India as well as internationally. The Company on its own and through its subsidiaries has a large portfolio of power generation capacity, both in operation as well as capacity under development. The company’s generation capacity stands at 5,945 MW, including 5,760 MW of thermal capacity and 185 MW of renewable energy-based capacity. In the last 12 months, the stock has gained 50 per cent while in the last 5 years it has logged multibagger returns of 1,732 per cent.
Investors should keep an eye on this stock.
Disclaimer: The article is for informational purposes only and not investment advice.