Anil Ambani
Anil Ambani’s Reliance Infrastructure has created panic in the stock market in the last one year. The company’s shares have given a bang of 101%, that is, the money of investors doubled! Behind this rally, the company’s debt -free balance sheet, tremendous bounce in credit rating and new life in the infrastructure sector are to fall. Now investors’ eyes are on the question whether this stock can reach a target of Rs 500? A slight decline in the stock was seen on Tuesday, but technical charts and experts say that this rally has power left. Reports of this week board meeting and fund raising this week can give more air to this rally.
101% returns, but what will be the speed?
Reliance Infra’s shares closed at Rs 388.15 with a slight decline of 0.3% on the NSE on Tuesday. Last week, reports of credit rating upgrade and fund raising the stock had given a wind to the stock, after which it rose 4.7%. The stock is 53.3% in the last three months, 42% in six months and 22.5% above this year. According to technical charts, the stock is still trading over all its 8 big moving averages (from 5-day to 200-day). This means that both short and long -term have a boom in the stock.
Ajit Mishra, SVP Research of Religare Broking, says, “Reliance Infra has a tremendous bullish momentum. The stock is above its crucial moving average and does not show any signs of fatigue or weakness. It is neither overbot nor oversold, which is also showing a stable Momentum, which is also indicated on the center line.
According to Mishra, immediate support of the stock is between Rs 365-380, while it is registered at Rs 400. If this registration breaks, the stock can go up to Rs 420-425. At the same time, Anirudh Garg, fund manager of Invasset PMS, says that a zone of Rs 415-420 can become a blockage in the short term. If the stock is firmly crossing the Rs 420, then a target of Rs 500 can be seen.
Credit rating surge, debt -free balance sheet
The biggest reason behind Reliance Infra’s rally is the changed financial health of the company. Last week, India Ratings and Research upgraded the company’s credit rating from ‘IND D’ to ‘IND B/Stable/IND A4’. This is an upgrade to three notchs, which brought the company out of the ‘default’ category after six years. The company said in its filing, “This upgrade is the result of the company’s debt -rich -free and efforts to strengthen the balance sheet. Now we have a net zero date with bank and financial institutions.”
Anirudh Garg says, “This credit rating upgrade is a game-shineer for the company. Debt-free balance sheet and better debt servicing have increased the trust of investors. Technical charts also have multi-air flying trendline breakout, which is a strong sign. This rally is not a short term, but the result of focal terms.”
The company’s board meeting is to be held on 16 July
The company’s board meeting is scheduled to be held on Wednesday, July 16, which will consider many options to raise long term funds. These include QIP, equity-linked security and NCDS. This meeting is taking place just before the results of Q1 FY26, in which the company can clean its fresh financial status and capital needs.
Apart from this, the company has recently received a defense contract of Rs 5,000 crore. It is an aircraft upgrade program, which Reliance Infra will handle alone as the first Indian company in the private sector. This project has to be completed in 7-10 years, which will support the company’s long term growth.
Tremendous boom in profit
The company introduced great results in the fourth quarter of FY25. Reliance Infra recorded a consolidated profit of Rs 4,387 crore, while there was a loss of Rs 3,298 crore in the last quarter. Adjusted Ebitda increased by 681% to Rs 8,876 crore. The company’s net worth rose 44% to Rs 14,287 crore. Also, the company achieved the target of zero date by reducing a loan of Rs 3,300 crore on standalone basis.