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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Torrent Power

Waaree Renewab.

CESC

NLC India

JP Power Ven.

KPI Green Energy

Reliance Infra.

Reliance Power

Nava

SJVN

GMR Urban

Why is Reliance Power Ltd ?

Weak Long Term Fundamental Strength with a -6.46% 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 9.83 times
The company has been able to generate a Return on Equity (avg) of 0.49% signifying low profitability per unit of shareholders funds

Falling Participation by Institutional Investors

Institutional investors have decreased their stake by -0.52% over the previous quarter and collectively hold 16.32% of the company
These investors have better capability and resources to analyse fundamentals of companies than most retail investors

Underperformed the market in the last 1 year

Even though the market (BSE500) has generated returns of 5.48% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -31.38% returns

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

-31.41%

-0.56

56.37%

Sensex

5.37%

0.47

11.36%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-0.93%

EBIT Growth (5y)

-6.46%

EBIT to Interest (avg)

0.54

Debt to EBITDA (avg)

10.19

Net Debt to Equity (avg)

0.82

Sales to Capital Employed (avg)

0.23

Tax Ratio

18.72%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

16.32%

ROCE (avg)

3.58%

ROE (avg)

0.49%

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

0.67

EV to EBIT

15.96

EV to EBITDA

10.35

EV to Capital Employed

0.82

EV to Sales

3.19

PEG Ratio

0.28

Dividend Yield

ROCE (Latest)

4.78%

ROE (Latest)

1.81%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

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

24What is working for the Company

PAT(Latest six months)

Higher at Rs 112.43 cr

ROCE(HY)

Highest at 6.49%

OPERATING PROFIT TO INTEREST(Q)

Highest at 1.63 times

CASH AND CASH EQUIVALENTS(HY)

Highest at Rs 1,727.38 cr

DEBT-EQUITY RATIO(HY)

Lowest at 0.92 times

DEBTORS TURNOVER RATIO(HY)

Highest at 5.73 times

PBT LESS OI(Q)

Highest at Rs 23.19 cr.

-5What is not working for the Company

PAT(Q)

At Rs 25.11 cr has Fallen at -66.5% (vs previous 4Q average

NON-OPERATING INCOME(Q)

is 76.84 % of Profit Before Tax (PBT

EPS(Q)

Lowest at Rs 0.06

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Here's what is working for Reliance Power

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 23.19 cr has Grown at 128.2% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs -82.38 Cr

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Operating Profit to Interest - Quarterly

Highest at 1.63 times

in the last five quarters

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Profit Before Tax less Other Income (PBT) - Quarterly

Highest at Rs 23.19 cr.

in the last five quarters

MOJO Watch

Near term PBT trend is positive

PBT less Other Income (Rs Cr)

Cash and Cash Equivalents - Half Yearly

Highest at Rs 1,727.38 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio - Half Yearly

Lowest at 0.92 times

in the last five half yearly periods

MOJO Watch

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

Debt-Equity Ratio

Debtors Turnover Ratio- Half Yearly

Highest at 5.73 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

Profit After Tax (PAT) - Quarterly

At Rs 25.11 cr has Fallen at -66.5% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 74.88 Cr

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Non Operating Income - Quarterly

is 76.84 % 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

Earnings per Share (EPS) - Quarterly

Lowest at Rs 0.06

in the last five quarters

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (Rs)