Once a major player in India’s commercial community, Anil Ambani has watched his empire grow smaller over time. However, because of their specialized market presence or potential for rebirth, some of his group companies continue to draw interest from investors. These are two Anil Ambani stocks that are worth monitoring if you’re searching for high-risk, high-reward prospects. Read More
1. Reliance Power Ltd (NSE: RPOWER)
Overview
Reliance Power, part of the Reliance Anil Dhirubhai Ambani Group (ADAG), is a key player in India’s power sector. The company focuses on thermal, hydro, solar, and wind power generation, with several projects across India.
Why Watch Reliance Power?
- Debt Reduction Efforts: The company has been working to reduce its massive debt through asset sales and restructuring.
- Government Support: The power sector is a priority for the Indian government, benefiting from policies like renewable energy incentives.
- Potential Turnaround: If operational efficiencies improve, the stock could see a rebound.
Key Financials (Latest Available Data)
| Metric | Value |
|---|---|
| Market Cap | ₹9,500 Cr |
| Debt-to-Equity | 3.5x |
| Revenue (TTM) | ₹5,200 Cr |
| Net Profit (TTM) | -₹1,800 Cr |
| 52-Week High/Low | ₹30 / ₹11 |
Risks
- High Debt: The company struggles with significant debt.
- Operational Losses: Continuous losses may deter investors.
- Regulatory Challenges: Power sector regulations can impact profitability.
Verdict
Reliance Power is a speculative bet—only suitable for investors with a high-risk appetite.
2. Reliance Infrastructure Ltd (NSE: RELINFRA)
Overview
Reliance Infrastructure is involved in metro rail projects, power production, and EPC (engineering, procurement, and construction). It has also dabbled in infrastructure and defense.
Why Watch Reliance Infrastructure?
- Asset Monetization: The company has been selling non-core assets to cut debt.
- Government Contracts: Involvement in metro and defense projects provides steady revenue.
- Strategic Partnerships: Collaborations with global firms may boost growth.
Key Financials (Latest Available Data)
| Metric | Value |
|---|---|
| Market Cap | ₹4,200 Cr |
| Debt-to-Equity | 2.8x |
| Revenue (TTM) | ₹6,100 Cr |
| Net Profit (TTM) | -₹950 Cr |
| 52-Week High/Low | ₹180 / ₹90 |
Risks
- Debt Burden: High leverage remains a concern.
- Execution Delays: Infrastructure projects often face delays.
- Competition: Faces stiff competition from larger players like L&T.
Verdict
Reliance Infrastructure is a turnaround play—monitor debt reduction and new contracts before investing.
Comparison Table: Reliance Power vs. Reliance Infrastructure
| Parameter | Reliance Power | Reliance Infrastructure |
|---|---|---|
| Sector | Power Generation | Infrastructure & EPC |
| Market Cap | ₹9,500 Cr | ₹4,200 Cr |
| Debt-to-Equity | 3.5x | 2.8x |
| Revenue (TTM) | ₹5,200 Cr | ₹6,100 Cr |
| Net Profit | -₹1,800 Cr | -₹950 Cr |
| Risk Level | Very High | High |
Should You Invest in Anil Ambani Stocks?
Both Reliance Power and Reliance Infrastructure are high-risk stocks with potential for recovery if debt issues are resolved. Here’s what to consider:
Pros:
✔️ Turnaround Potential: If debt reduces, stock prices could surge.
✔️ Government Focus: Power and infrastructure sectors get policy support.
✔️ Low Entry Price: Stocks trade at multi-year lows, offering speculative upside.
Cons:
❌ High Debt: Both companies struggle with financial stability.
❌ Operational Losses: Consistent losses raise sustainability concerns.
❌ Regulatory Risks: Policy changes can impact profitability.
Final Thoughts
Anil Ambani’s stocks are not for conservative investors. However, if you have a high-risk appetite and believe in a potential turnaround, adding RPOWER and RELINFRA to your watchlist could be worthwhile.
Monitor:
- Debt reduction progress
- New project announcements
- Government policies affecting the sector
Would you consider investing in these stocks? Let us know in the comments!
Disclaimer: This article is for informational purposes only. Please consult a financial advisor before making investment decisions.
By following market trends and company developments, you can make an informed choice on whether these stocks fit your portfolio. Keep an eye on quarterly results and management commentary for further insights.
