⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
RELINFRA - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 1.8
| Stock Code | RELINFRA | Market Cap | 5,192 Cr. | Current Price | 127 ₹ | High / Low | 425 ₹ |
| Book Value | 595 ₹ | Dividend Yield | 0.00 % | ROCE | -1.41 % | ROE | -8.12 % |
| Face Value | 10.0 ₹ | DMA 50 | 175 ₹ | DMA 200 | 239 ₹ | Chg in FII Hold | -1.35 % |
| Chg in DII Hold | -0.21 % | PAT Qtr | -166 Cr. | PAT Prev Qtr | -152 Cr. | RSI | 33.2 |
| MACD | -9.10 | Volume | 1,91,293 | Avg Vol 1Wk | 1,71,712 | Low price | 127 ₹ |
| High price | 425 ₹ | Debt to equity | 0.03 | 52w Index | 0.00 % | Qtr Profit Var | -75.2 % |
| EPS | -10.0 ₹ | Industry PE | 22.1 |
📊 Core Financials
- Revenue & Profitability: Quarterly PAT at -₹166 Cr, worsening from -₹152 Cr, showing continued losses. EPS at -₹10.0 reflects negative earnings.
- Margins: ROE at -8.12% and ROCE at -1.41% highlight poor efficiency and negative returns.
- Debt Ratios: Debt-to-equity at 0.03 indicates low leverage, but losses overshadow this advantage.
- Cash Flows: Weak profitability suggests stressed cash flows despite low debt.
💹 Valuation Indicators
- P/E Ratio: Not meaningful due to negative earnings.
- P/B Ratio: Current price ₹127 vs. book value ₹595 → ~0.21x, indicating deep undervaluation relative to assets.
- PEG Ratio: Not applicable due to negative earnings growth.
- Intrinsic Value: Asset-heavy balance sheet suggests undervaluation, but persistent losses erode intrinsic worth.
🏢 Business Model & Competitive Advantage
- Reliance Infrastructure operates in power, roads, metro, and defense projects.
- Competitive advantage lies in infrastructure assets and government contracts.
- However, weak profitability, negative returns, and declining investor confidence undermine overall health.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Risky accumulation only near ₹120 – ₹125, close to current lows.
- Long-Term Holding: High-risk investment; suitable only for speculative investors betting on turnaround. Conservative investors should avoid until profitability stabilizes.
✅ Positive
- Debt-to-equity ratio of 0.03 indicates minimal leverage.
- Stock trading at deep discount to book value (~0.21x).
⚠️ Limitation
- Negative ROE (-8.12%) and ROCE (-1.41%).
- Persistent losses with EPS at -₹10.0.
- No dividend yield, reducing investor appeal.
📉 Company Negative News
- Quarterly PAT worsened to -₹166 Cr.
- FII holding decreased (-1.35%) and DII holding decreased (-0.21%).
- Profit variation of -75.2% highlights severe instability.
📈 Company Positive News
- Low debt-to-equity ratio provides some financial cushion.
- Trading at deep discount to book value may attract speculative interest.
🏭 Industry
- Infrastructure sector trades at industry PE of 22.1, but RELINFRA’s losses make P/E irrelevant.
- Sector growth supported by government infrastructure push, though company-specific risks dominate.
🔎 Conclusion
- Reliance Infrastructure is asset-rich but financially weak, with persistent losses and negative return metrics.
- Valuation appears cheap relative to book value, but profitability concerns make it a speculative bet.
- Best avoided by conservative investors; speculative entry possible near ₹120 – ₹125 if turnaround prospects improve.
Would you like me to also prepare a comparative HTML snapshot of RELINFRA versus L&T to highlight how a strong infrastructure player differs in valuation and profitability?