Business News / There will be a competition between Anil Ambani and Gautam Adani, who will have the 'power'?

Vikrant Shekhawat : Jun 13, 2024, 08:22 AM
Business News: After the portfolio allocation in Modi Cabinet 2024, the market expects the power theme to work in the Indian stock market in the next five years. Since the share price of Anil Ambani's Reliance Power has been skyrocketing for the last five consecutive sessions, some experts predict that Anil Ambani's Reliance Power shares may emerge as the market leader in Modi 3.0. Experts are very excited about Anil Ambani's Reliance Power shares. There is a reason for this, because the company has become completely debt free. According to stock market experts, in Modi 3.0, power companies are working on capex, transmission network, EV and alternative energy sources like solar, wind etc.

In such a situation, Anil Ambani may also have to face many challenges. At the same time, the next question is whether Anil Ambani's Reliance will be able to compete with Adani's power company, which has emerged as India's largest power house at present? Will Reliance Power be able to compete with Adani and other companies that have gone far ahead by working on new sources of power and energy? Anil Ambani has many such questions in front of him, which will be very important to overcome and that too as soon as possible.

The challenges are not less

Speaking on the challenges that Anil Ambani may have to face, Profitmart Securities Research Head Avinash Gorakshakar says in a media report that in every bullish trend, we have seen a leader who leaves his peers far behind and beats the indices by giving alpha returns.

There was a time when Mafatlal stock was enough to dictate terms on Dalal Street. After that, the dominance of Mafatlal stock ended with the arrival of Reliance Industries and other business groups in the Indian economy. New business groups related to IT and technology sectors focused on power and energy infrastructure in Modi 2.0. During this time, Gautam Adani's power and other businesses also got a lot of help.

He further said that since Anil Ambani's Reliance Power has become a debt free company, the share price can attract long term investors. However, a lot will depend on how the company performs in the next few quarters. Being a debt free company does not mean anything. It is very important for the company to be solid and have quality. In such a situation, the results of the first quarter of the current financial year can be very important for Reliance Power.

How can Anil Ambani become a market leader?

How can Anil Ambani emerge as a market leader in Modi 3.0? This is an important question. On this, Sandeep Pandey, founder of Basav Capita and former Vice President of HDFC Bank, says in a media report that the power theme is expected to work in Modi 3.0. However, investors will keep an eye on companies that have increased their capex and distribution network, the company's order book will also matter.

Gautam Adani's Adani Power and other power stocks performed well Since Anil Ambani's Reliance Power has become a debt free company, it will need to work faster and more efficiently on these parameters to bring confidence among investors. On the other hand, Anil Ambani can increase his stake in Reliance Power.

Sandeep Pandey adds that power companies working on EV and other sources of alternative power and energy are expected to perform better. Gautam Adani and some other power companies are already working on this.

How far can Reliance Power's stock go?

In the last five consecutive sessions, the share price of Reliance Power on NSE has increased from Rs 23.50 to Rs 31.30, giving its investors a return of about 33 percent. Speaking on the share price outlook of Reliance Power, Sumeet Bagadia, Executive Director, Choice Broking, said in a media report that Reliance Power's stock has given a new breakout at Rs 28, and the stock looks positive on the chart pattern. The stock is facing difficulties at the level of Rs 32 per share. If the company's stock breaks this level and moves forward, then the stock price can soon reach the level of Rs 36.