RPOWER - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 2.6
| Stock Code | RPOWER | Market Cap | 11,832 Cr. | Current Price | 28.6 ₹ | High / Low | 76.5 ₹ |
| Book Value | 23.6 ₹ | Dividend Yield | 0.00 % | ROCE | -0.18 % | ROE | -0.99 % |
| Face Value | 10.0 ₹ | DMA 50 | 26.8 ₹ | DMA 200 | 34.4 ₹ | Chg in FII Hold | 0.87 % |
| Chg in DII Hold | 0.07 % | PAT Qtr | -0.67 Cr. | PAT Prev Qtr | 4.73 Cr. | RSI | 58.7 |
| MACD | 1.41 | Volume | 5,38,20,847 | Avg Vol 1Wk | 6,16,08,987 | Low price | 20.2 ₹ |
| High price | 76.5 ₹ | Debt to equity | 0.62 | 52w Index | 15.0 % | Qtr Profit Var | -309 % |
| EPS | -0.24 ₹ | Industry PE | 31.0 |
📊 RPOWER shows very weak fundamentals with negative ROE (-0.99%) and ROCE (-0.18%), reflecting poor efficiency. EPS is negative (-₹0.24), and quarterly PAT slipped into losses (₹-0.67 Cr vs ₹4.73 Cr). The stock trades below its book value (₹23.6 vs current price ₹28.6), but profitability concerns remain. Dividend yield is 0%, and PEG ratio is unavailable, indicating poor growth visibility. Debt-to-equity ratio (0.62) is moderate, but consistent losses limit long-term attractiveness. Technicals show neutral momentum with RSI (58.7) and MACD positive (1.41).
💡 Ideal Entry Price Zone: ₹25 – ₹27 (near DMA 50 and below current levels for risk-managed entry).
⏳ Exit Strategy / Holding Period: Existing holders should adopt a short-term horizon, exiting near ₹34–₹36 (DMA 200 resistance). Long-term holding is not advisable unless profitability metrics turn positive and earnings stabilize.
✅ Positive
- Stock trades close to book value (₹23.6).
- Moderate debt-to-equity ratio (0.62).
- FII (+0.87%) and DII (+0.07%) holdings increased, showing some institutional interest.
⚠️ Limitation
- Negative ROE (-0.99%) and ROCE (-0.18%).
- EPS negative (-₹0.24).
- Dividend yield is 0%, offering no income support.
- Quarterly profit variation (-309%) highlights instability.
📉 Company Negative News
- Quarterly PAT slipped into losses (₹-0.67 Cr vs ₹4.73 Cr).
- Stock corrected sharply from 52-week high (₹76.5 to ₹28.6).
📈 Company Positive News
- Institutional investors marginally increased stake.
- MACD positive (1.41) indicates short-term bullish momentum.
🏭 Industry
- Industry P/E: 31.0, highlighting RPOWER’s inability to generate earnings compared to peers.
- Power sector supported by infrastructure demand, but profitability remains critical.
🔎 Conclusion
RPOWER is fundamentally weak with negative profitability and poor efficiency, making it unsuitable for long-term investment. New investors should avoid entry until earnings stabilize. Existing holders may exit near ₹34–₹36 on recovery rallies. Long-term holding is not advisable unless ROE and PAT turn consistently positive.