Reliance Power Ltd (RPOWER) 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

Clean Max Enviro

PTC India

CESC

JP Power Ven.

Waaree Renewab.

KPI Green Energy

Nava

Reliance Power

GMR Urban

RattanIndia Pow.

Vedanta Power

Why is Reliance Power Ltd ?

Weak Long Term Fundamental Strength with a -9.71% CAGR growth in Operating Profits over the last 5 years

Low ability to service debt as the company has a high Debt to EBITDA ratio of 6.27 times
The company has been able to generate a Return on Equity (avg) of 0.06% signifying low profitability per unit of shareholders funds

Flat results in Jun 26

PBDIT(Q) Lowest at Rs 562.41 cr.
OPERATING PROFIT TO NET SALES (Q) Lowest at 28.75%
NON-OPERATING INCOME(Q) is 127.17 % of Profit Before Tax (PBT)

Falling Participation by Institutional Investors

Institutional investors have decreased their stake by -0.82% over the previous quarter and collectively hold 16.44% of the company
These investors have better capability and resources to analyse fundamentals of companies than most retail investors

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 Power for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Reliance Power

-46.2%

-0.96

47.90%

Sensex

-2.63%

-0.19

13.57%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-0.82%

EBIT Growth (5y)

-10.39%

EBIT to Interest (avg)

0.51

Debt to EBITDA (avg)

10.12

Net Debt to Equity (avg)

0.82

Sales to Capital Employed (avg)

0.23

Tax Ratio

100.00%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

16.44%

ROCE (avg)

3.43%

ROE (avg)

0.06%

Valuation

Valuation Scorecard

Valuation grade scale :

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

Valuation Key Factors

Factor

Value

P/E Ratio

155

Industry P/E

Price to Book Value

0.63

EV to EBIT

15.14

EV to EBITDA

9.82

EV to Capital Employed

0.80

EV to Sales

3.01

PEG Ratio

0.11

Dividend Yield

ROCE (Latest)

5.26%

ROE (Latest)

0.28%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

No Trend

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

PAT(Q)

At Rs 64.71 cr has Grown at 477.1% (vs previous 4Q average

DEBTORS TURNOVER RATIO(HY)

Highest at 5.82 times

-5What is not working for the Company

PBDIT(Q)

Lowest at Rs 562.41 cr.

OPERATING PROFIT TO NET SALES (Q)

Lowest at 28.75%

NON-OPERATING INCOME(Q)

is 127.17 % of Profit Before Tax (PBT

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Here's what is working for Reliance Power

Profit After Tax (PAT) - Quarterly

At Rs 64.71 cr has Grown at 477.1% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 11.21 Cr

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Debtors Turnover Ratio- Half Yearly

Highest at 5.82 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 Power

Operating Profit (PBDIT) - Quarterly

Lowest at Rs 562.41 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 28.75%

in the last five quarters

MOJO Watch

Company's efficiency has deteriorated

Operating Profit to Sales

Non Operating Income - Quarterly

is 127.17 % of Profit Before Tax (PBT)

MOJO Watch

The company's income from non business activities is high; which is not a sustainable business model

Non Operating Income to PBT

Non Operating Income - Quarterly

Highest at Rs 147.43 cr

in the last five quarters

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating Income