Reliance Infrastructure Ltd (RELINFRA) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Solarworld Ene.

PTC India

K.P. Energy

GMR Urban

Sustainable Ener

Insolation Ener

Guj Inds. Power

Ujaas Energy

RattanIndia Pow.

Orient Green

Reliance Infra.

Why is Reliance Infrastructure Ltd ?

With a Operating Losses, the company has a Weak Long Term Fundamental Strength

Poor long term growth as Operating profit has grown by an annual rate 9.65% of over the last 5 years
Low ability to service debt as the company has a high Debt to EBITDA ratio of 4.92 times

Negative results in Mar 26

PAT(Latest six months) At Rs 1,405.29 cr has Grown at -61.45%
PBT LESS OI(Q) At Rs 1,498.39 cr has Fallen at -32.6% (vs previous 4Q average)
OPERATING PROFIT TO INTEREST (Q) Lowest at -2.07 times

Risky - Negative Operating Profits

The company has recorded a negative EBIT of Rs. -462.3 cr
Over the past year, while the stock has generated a return of -79.04%, its profits have fallen by -51.4%
The stock is trading risky as compared to its average historical valuations

Despite the size of the company, domestic mutual funds hold only 0.64% of the company

Domestic mutual funds have capability to do in-depth on-the-ground research on companies- their small stake may signify either they are not comfortable at the price or the business

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Power)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Reliance Infra. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Reliance Infra.

-79.04%

-1.42

55.49%

Sensex

-6.97%

-0.54

12.97%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.12%

EBIT Growth (5y)

9.65%

EBIT to Interest (avg)

0.28

Debt to EBITDA (avg)

7.19

Net Debt to Equity (avg)

0.14

Sales to Capital Employed (avg)

0.97

Tax Ratio

Tax Ratio is Negative%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

6.78%

ROCE (avg)

3.38%

ROE (avg)

7.41%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.15

EV to EBIT

-11.28

EV to EBITDA

5.20

EV to Capital Employed

0.25

EV to Sales

0.26

PEG Ratio

Dividend Yield

ROCE (Latest)

-2.26%

ROE (Latest)

10.44%

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

No Trend

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

4What is working for the Company

DEBT-EQUITY RATIO(HY)

Lowest at 0.28 times

DEBTORS TURNOVER RATIO(HY)

Highest at 17.30 times

PAT(Q)

At Rs 1,414.17 cr has Grown at 30.8% (vs previous 4Q average

-18What is not working for the Company

PAT(Latest six months)

At Rs 1,405.29 cr has Grown at -61.45%

PBT LESS OI(Q)

At Rs 1,498.39 cr has Fallen at -32.6% (vs previous 4Q average

OPERATING PROFIT TO INTEREST (Q)

Lowest at -2.07 times

NET SALES(Q)

Lowest at Rs 4,001.28 cr

PBDIT(Q)

Lowest at Rs -720.98 cr.

OPERATING PROFIT TO NET SALES (Q)

Lowest at -18.02%

Loading Valuation Snapshot...

Here's what is working for Reliance Infra.

Debt-Equity Ratio - Half Yearly

Lowest at 0.28 times and Fallen

each half year in the last five half yearly periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Profit After Tax (PAT) - Quarterly

At Rs 1,414.17 cr has Grown at 30.8% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 1,081.33 Cr

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Debtors Turnover Ratio- Half Yearly

Highest at 17.30 times

in the last five half yearly periods

MOJO Watch

Company has been able to settle its Debtors faster

Debtors Turnover Ratio

Here's what is not working for Reliance Infra.

Net Sales - Quarterly

At Rs 4,001.28 cr has Fallen at -22.1% (vs previous 4Q average)

over average Net Sales of the previous four quarters of Rs 5,136.82 Cr

MOJO Watch

Near term sales trend is very negative

Net Sales (Rs Cr)

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 1,498.39 cr has Fallen at -32.6% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 2,224.45 Cr

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Operating Profit to Interest - Quarterly

Lowest at -2.07 times

in the last five quarters

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales - Quarterly

Lowest at Rs 4,001.28 cr

in the last five quarters

MOJO Watch

Near term sales trend is negative

Net Sales (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Lowest at Rs -720.98 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Lowest at -18.02%

in the last five quarters

MOJO Watch

Company's efficiency has deteriorated

Operating Profit to Sales