Reliance Power's Financials Raise Concerns: Lowest Interest Coverage and Highest Debt to Equity Ratio in Five Quarters.

Interest Coverage - Quarterly: Lowest at 0.3 times in the last five quarters. This indicates that the company may have difficulty in meeting its interest obligations.
Debt to Equity Ratio - Quarterly: Highest at 2.6 times in the last five quarters. This shows that the company is highly leveraged and may face financial strain in the future.

Reliance Power, a midcap power company, recently announced its financial results for the quarter ending March 2024. According to the data released on May 25, 2024, the company's performance has remained flat compared to the previous quarter. However, there has been a slight improvement in the overall score, which has increased from -12 to 1 in the last three months.

Despite this, there are some areas of concern for Reliance Power based on its financials for the quarter. The company's non-operating income has reached its highest point in the last five quarters, standing at Rs 197.20 crore. While this may seem like a positive development, experts warn that this increase may not be sustainable in the long run.

Another red flag is the company's interest coverage ratio, which has hit its lowest point in the last five quarters at 0.3 times. This indicates that Reliance Power may struggle to meet its interest obligations, which could have a negative impact on its financial health.

Moreover, the company's debt to equity ratio has also reached its highest point in the last five quarters at 2.6 times. This suggests that Reliance Power is highly leveraged and may face financial strain in the future.

Based on these factors, MarketsMOJO has given a 'Sell' call for Reliance Power's stock. Investors are advised to carefully consider these financial indicators before making any investment decisions.