RTNINDIA - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 20 Dec 25, 11:16 pm

Fundamental Rating: 1.9

📊 Financials: RattanIndia Enterprises (RTNINDIA) has reported a severe quarterly loss (PAT -₹401 Cr vs ₹514 Cr previously), reflecting significant earnings volatility. EPS at -₹2.88 indicates negative profitability. ROE at 10.7% and ROCE at 10.6% are modest but undermined by losses. Debt-to-equity ratio of 0.56 shows moderate leverage, manageable but risky given weak cash flows. Dividend yield is 0.00%, offering no income support.

💹 Valuation: Stock P/E is not meaningful due to negative earnings. Book value ₹8.46 vs CMP ₹41.3 implies a steep P/B multiple (~4.9x). PEG ratio is unavailable, reflecting lack of consistent earnings growth. Intrinsic value appears lower than CMP, signaling caution.

🏭 Business Model: RTNINDIA operates across diversified businesses including fintech, EVs, and renewable energy. Competitive advantage lies in diversification and new-age ventures, but profitability remains inconsistent. Risks include execution challenges, high competition, and weak earnings visibility.

📈 Entry Zone: Technically, support lies near ₹37–₹39. CMP at ₹41.3 is below DMA 50 (₹45.9) and DMA 200 (₹52.3), indicating weakness. RSI at 26.4 suggests oversold territory, but entry is advisable only on dips closer to ₹37 for margin of safety.

📌 Long-term Holding: Given negative profitability, volatile earnings, and stretched valuations, long-term holding requires caution. Investors should wait for consistent profitability before considering extended positions.

Positive

• 📊 ROE (10.7%) and ROCE (10.6%) show moderate efficiency despite losses.
• 📈 RSI at 26.4 indicates oversold territory, potential for short-term technical rebound.
• 🏭 Diversified business model across fintech, EVs, and renewable energy sectors.

Limitation

• ⚠️ Quarterly PAT loss (-₹401 Cr) signals severe earnings pressure.
• 📉 EPS of -₹2.88 reflects negative profitability.
• 💸 No dividend yield (0.00%) offers no income support.
• 📉 CMP below DMA 50 and DMA 200 indicates technical weakness.

Company Negative News

• 📉 Decline in DII holdings (-0.04%) indicates reduced domestic institutional confidence.

Company Positive News

• 📈 Increase in FII holdings (+0.22%) shows marginal foreign investor support.

Industry

• 🏭 Diversified industry peers trade at PE of 42.2, but RTNINDIA’s negative earnings make comparison difficult.
• 📊 Industry outlook supported by fintech and renewable energy growth, but execution risks remain high.

Conclusion

⚖️ RTNINDIA is fundamentally weak with negative profitability and stretched valuations. Entry is advisable only near ₹37 support zones for speculative positions. Long-term holding requires caution unless earnings stabilize and consistent profitability emerges.

Would you like me to extend this with a peer benchmarking overlay against diversified players like Adani Enterprises and Tata Power to highlight comparative valuation and efficiency?