RELINFRA - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 2.5
| Stock Code | RELINFRA | Market Cap | 3,214 Cr. | Current Price | 78.7 ₹ | High / Low | 425 ₹ |
| Book Value | 595 ₹ | Dividend Yield | 0.00 % | ROCE | -1.41 % | ROE | -8.12 % |
| Face Value | 10.0 ₹ | DMA 50 | 99.1 ₹ | DMA 200 | 183 ₹ | Chg in FII Hold | -0.19 % |
| Chg in DII Hold | 0.18 % | PAT Qtr | -166 Cr. | PAT Prev Qtr | -152 Cr. | RSI | 43.3 |
| MACD | -3.58 | Volume | 12,67,963 | Avg Vol 1Wk | 12,67,963 | Low price | 64.2 ₹ |
| High price | 425 ₹ | Debt to equity | 0.03 | 52w Index | 3.99 % | Qtr Profit Var | -75.2 % |
| EPS | -10.0 ₹ | Industry PE | 30.5 |
📊 RELINFRA shows very weak fundamentals with negative ROE (-8.12%) and ROCE (-1.41%), consistent quarterly losses (PAT -₹166 Cr vs -₹152 Cr), and negative EPS (-₹10.0). The stock trades far below its book value (₹595), but remains technically weak, with price below DMA 50 (₹99.1) and DMA 200 (₹183). Dividend yield is 0%, and PEG ratio is unavailable, reflecting poor growth visibility. Despite low debt-to-equity (0.03), profitability concerns make RELINFRA a poor candidate for long-term investment.
💡 Ideal Entry Price Zone: ₹70 – ₹75 (near support levels and below current price for risk management).
⏳ Exit Strategy / Holding Period: Existing holders should adopt a short-term horizon and exit on any recovery toward ₹95–₹100. Long-term holding is not advisable unless profitability metrics turn positive and technical strength improves.
✅ Positive
- Strong book value (₹595) compared to current price (₹78.7).
- Low debt-to-equity ratio (0.03) reduces financial risk.
- DII holdings increased slightly (+0.18%).
⚠️ Limitation
- Negative ROE (-8.12%) and ROCE (-1.41%).
- Consistent quarterly losses with declining profitability.
- EPS negative (-₹10.0).
- Price far below DMA 50 and DMA 200, showing technical weakness.
📉 Company Negative News
- Quarterly PAT losses continue (₹-166 Cr vs ₹-152 Cr).
- FII holdings reduced (-0.19%).
- MACD negative (-3.58) indicates bearish momentum.
📈 Company Positive News
- Low leverage provides some financial stability.
- Book value significantly higher than market price, offering theoretical value support.
🏭 Industry
- Industry P/E: 30.5, highlighting RELINFRA’s inability to generate earnings compared to peers.
- Infrastructure sector remains capital-intensive, requiring consistent profitability for sustainability.
🔎 Conclusion
RELINFRA is fundamentally weak with negative profitability and poor technicals, making it unsuitable for long-term investment. New investors should avoid entry until profitability improves. Existing holders should exit near ₹95–₹100 on recovery rallies, as long-term holding carries significant risk despite low debt levels.