RTNINDIA - Fundamental Analysis: Financial Health & Valuation

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

Fundamental Rating: 3.6

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📊 Fundamental Analysis Report

• Stock Code: RTNINDIA
• Market Cap: ₹7,224 Cr
• Current Price: ₹52.3
• 52W High/Low: ₹77.6 / ₹37.4
• EPS: -₹1.75
• Stock P/E: N/A (Negative EPS) ❗
• PEG Ratio: N/A ❗
• Book Value: ₹7.62 | P/B Ratio: ~6.86 ❗
• ROE: 10.7% | ROCE: 10.6% 🔶
• Debt to Equity: 0.62 🟡 (Moderate Leverage)
• Dividend Yield: 0.00% 🚫
• Quarterly PAT: ₹514 Cr (vs -₹353 Cr prev) 🔁
• RSI: 50.0 | MACD: -0.55 📉

✅ Positive

• Strong turnaround in PAT from negative to ₹514 Cr indicates operational recovery.
• ROE and ROCE above 10% reflect decent capital efficiency.
• FII holding increased by 0.22%, showing renewed foreign interest.
• Price near 52-week low and below DMA 50/200 may offer value entry point.

⚠️ Limitation

• Negative EPS and missing P/E/PEG ratios limit valuation clarity.
• High P/B ratio (~6.86) suggests overvaluation relative to book value.
• Dividend yield is zero, offering no passive income.
• Volume below average and MACD negative indicate weak short-term momentum.

📉 Company Negative News

• Quarterly profit variation of -40.4% indicates earnings volatility despite recent PAT recovery.
• DII holding declined slightly (-0.04%), reflecting cautious domestic sentiment.

📈 Company Positive News

• Massive PAT swing from loss to profit signals potential turnaround story.
• Stock has gained 36.9% over the past year, showing improving investor sentiment.

🏦 Industry

• RTNINDIA operates in the infrastructure and power transmission sector.
• Industry P/E of 38.3 suggests sector optimism, though RTNINDIA’s valuation is unclear due to negative EPS.
• Sector benefits from government-led infrastructure expansion and energy reforms.

🧭 Conclusion

• Entry Zone: ₹48–₹51 (near support and RSI neutral)
• Long-Term View: Turnaround in profitability and sector tailwinds support cautious optimism. Accumulate selectively while monitoring earnings consistency and valuation clarity.