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Reliance Infra Share Price surged over 1,350% in five years, showing strong investor confidence.
Strategic deals in defence and aviation are boosting Reliance Infrastructure Limited’s growth outlook.
Backed by the Anil Dhirubhai Ambani Group, the stock shows improved financials with zero standalone net debt.
Reliance Infrastructure Limited (RInfra), part of the Anil Dhirubhai Ambani Group (ADAG), has become one of the most talked-about stocks in the Indian market in recent months. With strong rallies, major announcements, and improving financials, the stock has shown powerful momentum. The company's operations span across infrastructure, defence, and power distribution sectors. This article provides a detailed analysis of Reliance Infra's share price trends, the latest updates, financial performance, and market outlook in simple terms.
The current market price of Reliance Infra is ₹384.75, with a daily gain of ₹1.95, or 0.51%. In the past month, the stock has gone up by around 45%, driven mainly by positive news, improving earnings, and strong investor interest.
Over the last five years, the stock has returned more than 1,350%, making it one of the best-performing shares in its sector. Even compared to broader market indices like the Nifty, which rose only around 130% in that time, Reliance Infra has outperformed.
Reliance Infra recently announced a big partnership with Dassault Aviation, a French aerospace company. The two companies will build Falcon 2000 private jets in India. The assembly line will be set up in Nagpur, and the first planes are expected to be delivered by 2028.
This is a major step for the company, as it will be the first time Dassault's jets are produced outside France. Investors saw this as a strong signal of growth and innovation, and the share price jumped on the day of the news.
Reliance Defence, a subsidiary of Reliance Infra, also expanded its partnership with Diehl Defence, a German company. The two will work together to produce ammunition for the Indian Army. This aligns with the Indian government’s “Make in India” programme, which supports domestic defence production.
This deal opens doors for future contracts, especially since the market for defence equipment in India is growing rapidly. The market reacted positively to this announcement.
Earlier this year, the National Company Law Tribunal (NCLT) had admitted a case against Reliance Infra for insolvency. However, the National Company Law Appellate Tribunal (NCLAT) later suspended those proceedings. This gave a big boost to investor confidence, as the company avoided being dragged into a long legal battle that could have damaged its reputation and operations.
Reliance Infra recently received ₹300 crore through the conversion of warrants into equity shares. This move improved the company’s cash position and showed that investors are willing to put money into the business.
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Profit after tax (PAT): ₹4,387 crore (compared to a loss of ₹221 crore in the same quarter last year).
Revenue (standalone): ₹4,108 crore, with some decline in infrastructure revenues.
Earnings before interest, tax, depreciation, and amortization (EBITDA): ₹12,288 crore for full-year FY25, up 154% from the previous year.
Net profit for FY25: ₹4,938 crore (compared to a loss of ₹1,609 crore in FY24).
Net debt: Reduced to zero on a standalone basis.
Net worth: ₹14,287 crore, up 70% year-on-year.
Debt-to-equity ratio: 0.28, down from 0.78 last year, showing improved financial stability.
This dramatic turnaround in profits and debt reduction has made investors more optimistic about the future of the company.
Promoter Holding: 16.5%
Foreign Institutional Investors (FII): 11.35%
Domestic Institutional Investors (DII): 1.25%
Retail and others: The rest of the holding
Although promoter holding is relatively low, it is a positive sign that there are no shares pledged, indicating the promoters are not under financial stress.
Price-to-Earnings (P/E) Ratio: Around 3.1 times, which is considered low, suggesting the stock is undervalued compared to its peers.
Price-to-Book (P/B) Ratio: Around 1.05 times, again showing that the company might be trading below its actual worth.
Return on Equity (ROE): About 10.3% (three-year average), which is decent for the sector.
Low P/E and improving ROE are signs that the company is recovering well and may still have room to grow.
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Despite the positive developments, there are some risks:
Revenue from the infrastructure segment has declined in recent quarters. If this trend continues, it may affect overall growth.
Promoter stake is on the lower side, which might raise concerns about long-term control and decision-making.
Execution risk is high. The success of the Dassault and Diehl partnerships will depend on timely delivery, regulatory approvals, and strong project management.
Any new legal trouble or revival of insolvency proceedings can pull the stock down sharply.
The stock is showing strong bullish momentum. If the company continues to deliver on its plans, especially in aviation and defence manufacturing, the price may rise beyond ₹400 in the coming weeks.
However, in the near term, the stock might move sideways between ₹360 to ₹390 as the market waits for more updates. Investors should monitor progress on the Falcon jet production and defence orders, as these will have a major impact on the stock’s future movement.
Reliance Infra has emerged as a strong turnaround story in the Indian stock market. A combination of debt reduction, solid quarterly results, and major strategic partnerships in the defence and aviation sectors has boosted investor confidence.
The company still has challenges to overcome, particularly in its infrastructure business. But the shift toward high-growth areas like defence production and private jet manufacturing offers a fresh opportunity for long-term gains.
With technical indicators, financial numbers, and business updates all pointing in the right direction, Reliance Infra remains a stock to watch closely in 2025.
