Reliance Power Limited’s subsidiary, Reliance NU Suntech Private Limited, has secured a Letter of Award (LOA) from the Solar Energy Corporation of India (SECI) for a 930 MW solar power project and a 465 MW/1,860 MWh Battery Energy Storage System (BESS). This project marks the establishment of Asia’s largest grid-storage battery project, excluding China.
SECI Project Award: A New Chapter for Solar and Battery Energy in India
This project was won through an e-reverse auction held on December 9, 2024, symbolizing progress in integrating solar energy with Battery Energy Storage Systems (BESS) in India.
- Ensures reliable four-hour peak power supply.
- Reduces DISCOMs’ dependence on expensive power exchange rates.
Under a 25-year Power Purchase Agreement (PPA), Reliance NU Suntech will develop this project on a build-own-operate model, distributing the generated power to DISCOMs across the country.
Stock Performance: A Golden Opportunity for Investors
- Opening price: ₹46.71 per share, compared to the previous close of ₹47.23.
- Current price: ₹47.34 per share.
- Market cap: ₹18,963 crore.
- Returns: Delivered 100% returns over the past year, making it an attractive option for investors.
Financial Performance
Quarterly Results (Q2 FY25):
- Revenue: ₹1,760 crore.
- Operating profit: ₹376 crore.
- Operating profit margin: 21%.
- Net profit: ₹2878 crore.
Annual Results (FY24):
- Revenue: ₹7,893 crore, up from ₹7,514 crore in FY23.
- Operating profit: ₹1,160 crore.
- Net profit: ₹2,878 crore in FY24, compared to a loss of ₹2,068 crore in FY23.
SECI Project: A Key Indicator for Investors
This SECI project significantly enhances India’s solar and battery energy storage capabilities. Reliance Power has shown remarkable improvement in financial performance, and its stock has delivered multibagger returns in the past year. Priced under ₹50, this small-cap stock could be a valuable addition to investors’ portfolios.
Disclaimer:
Investments in the stock market are subject to market risks. Please conduct your research or consult a financial advisor before making investment decisions. The information in this article aims to raise awareness and enhance knowledge for both investors and traders.
