RTNINDIA - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Rating: 2.3

📉 Core Financial Analysis

Profitability & Returns

ROE: 9.17%, ROCE: 12.7% — modest, not particularly inspiring for long-term capital efficiency.

EPS: ₹0.61 — extremely low, weak earnings per share profile.

PAT collapse (₹–356 Cr vs ₹–170 Cr) — deep losses; indicates financial stress or restructuring issues.

Quarterly Profit Variation: –338% — alarming and indicative of operational or one-time expenses.

Debt & Leverage

Debt-to-Equity: 1.00 — high leverage, making it more vulnerable in a volatile environment.

Cash Flow Position

Not explicitly available, but persistent losses suggest potential strain on operational cash flow and liquidity.

🧮 Valuation Indicators

Metric Value Notes

P/E Ratio 97.5 Extremely high — unjustified for negative profitability

P/B Ratio ~8.55 High premium — likely speculative valuation

PEG Ratio 1.32 Acceptable range, but questionable due to erratic earnings

RSI 41.7 Bearish-to-neutral — no momentum strength

MACD –0.25 Mild bearish trend — confirms weak sentiment

DMA Position ₹57.0 vs DMA50 ₹57.2 / DMA200 ₹56.9 Flat-line zone — technically consolidating

Volume: Slightly above weekly average — shows some investor engagement, possibly speculative.

FII/DII Activity

FIIs pulling back (–0.15%), DIIs marginally supportive (+0.01%) — net cautious stance.

52W Index: 35.7% — far off its highs, underperforming broadly.

🏢 Business Model & Strategic Insight

Industry: Infrastructure/Utilities (likely diversified holdings).

Strengths

Access to large-scale assets and public-private sector opportunities.

Risks

Heavy debt, large quarterly losses, and low return ratios.

Dividend yield at 0% — no income incentive for investors.

Valuation is stretched far beyond fundamentals — raises caution.

🎯 Investment Strategy

Entry Zone: ₹50–₹55 — only suited for ultra-speculative or turnaround-themed strategies.

Long-Term View

Best avoided unless there's strong evidence of revival, asset monetization, or management overhaul.

Keep an eye on debt restructuring, quarterly margin trajectory, and institutional re-entry.

Would you like me to pit RTNINDIA against something like IRB Infra or GMR to evaluate capital structure, project pipeline, and earnings visibility? That might sharpen perspective before making any calls.

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