RPOWER - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 05 Nov 25, 7:43 am

Fundamental Rating: 3.2

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📊 Fundamental Analysis Report

• Stock Code: RPOWER
• Market Cap: ₹19,198 Cr
• Current Price: ₹46.4
• 52W High/Low: ₹76.5 / ₹31.3
• EPS: -₹0.23
• Stock P/E: N/A (Negative EPS) ❗
• PEG Ratio: N/A ❗
• Book Value: ₹24.2 | P/B Ratio: ~1.92 ✅
• ROE: -0.99% | ROCE: -0.18% ❗
• Debt to Equity: 0.64 🟡 (Moderate Leverage)
• Dividend Yield: 0.00% 🚫
• Quarterly PAT: ₹1.90 Cr (vs -₹101 Cr prev) 🔁
• RSI: 53.2 | MACD: -0.20 📉

✅ Positive

• Turnaround in PAT from loss to profit indicates early signs of recovery.
• Moderate debt-to-equity ratio suggests manageable leverage.
• FII and DII holdings increased slightly, signaling cautious institutional optimism.
• Stock trading near DMA levels may offer technical support.

⚠️ Limitation

• Negative EPS and ROE/ROCE reflect weak profitability and inefficient capital use.
• Absence of P/E and PEG ratios limits valuation clarity.
• Dividend yield is zero, offering no passive income.
• Volume below average and MACD negative suggest weak short-term momentum.

📉 Company Negative News

• ROE and ROCE remain negative despite recent PAT improvement.
• Profitability metrics still lag industry standards.

📈 Company Positive News

• Quarterly profit swing from -₹101 Cr to ₹1.90 Cr shows operational improvement.
• Stock has gained 33.5% over the past year, reflecting improving sentiment.

🏦 Industry

• RPOWER operates in the power generation and infrastructure sector.
• Industry P/E of 30.9 indicates moderate valuation across peers.
• Sector benefits from energy demand growth and infrastructure investments.

🧭 Conclusion

• Entry Zone: ₹42–₹45 (near support and RSI neutral)
• Long-Term View: While recent profitability is encouraging, weak fundamentals and negative returns warrant caution. Suitable only for high-risk investors with close monitoring.