RTNINDIA - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 1.8
| Stock Code | RTNINDIA | Market Cap | 5,269 Cr. | Current Price | 38.1 ₹ | High / Low | 69.7 ₹ |
| Book Value | 8.46 ₹ | Dividend Yield | 0.00 % | ROCE | 10.6 % | ROE | 10.7 % |
| Face Value | 2.00 ₹ | DMA 50 | 42.9 ₹ | DMA 200 | 50.3 ₹ | Chg in FII Hold | 0.22 % |
| Chg in DII Hold | -0.04 % | PAT Qtr | -401 Cr. | PAT Prev Qtr | 514 Cr. | RSI | 30.6 |
| MACD | -1.15 | Volume | 9,41,724 | Avg Vol 1Wk | 12,17,111 | Low price | 37.4 ₹ |
| High price | 69.7 ₹ | Debt to equity | 0.56 | 52w Index | 2.07 % | Qtr Profit Var | -63.8 % |
| EPS | -2.88 ₹ | Industry PE | 56.3 |
📊 Financials: RTN India shows weak fundamentals with EPS at -2.88 ₹, reflecting losses. ROE of 10.7% and ROCE of 10.6% are moderate but overshadowed by negative profitability. Debt-to-equity at 0.56 indicates manageable leverage. Quarterly PAT collapsed from 514 Cr. to -401 Cr., a -63.8% variation, raising serious concerns about earnings stability. Dividend yield is 0.00%, offering no income support for investors.
💹 Valuation: The stock currently has no meaningful P/E due to negative earnings. Book Value of 8.46 ₹ gives a P/B ratio of ~4.5, which is expensive considering losses. PEG ratio is unavailable, reflecting lack of growth visibility. Intrinsic value appears significantly lower than current market price, making the stock overvalued relative to fundamentals.
🏢 Business Model & Health: RTN India operates in infrastructure and power transmission projects. Competitive advantage lies in government contracts and sectoral demand. However, profitability collapse and weak earnings trends undermine overall health. Balance sheet leverage is moderate, but cash flow risks remain high.
🎯 Entry Zone: Current price of 38.1 ₹ is near its 52-week low (37.4 ₹), far below its high (69.7 ₹). RSI at 30.6 suggests oversold conditions, but fundamentals do not justify aggressive entry. A cautious entry zone would be around 30–33 ₹, only for speculative investors willing to take high risk.
📈 Long-Term Holding Guidance: RTN India is risky for long-term holding given earnings collapse and lack of dividend support. Investors should avoid heavy exposure until profitability stabilizes. Current fundamentals do not justify long-term commitment.
Positive
- 📊 Manageable debt-to-equity ratio (0.56).
- 📉 RSI near oversold levels, potential for short-term technical rebound.
- 🏢 Presence in infrastructure and power transmission sector with government-linked projects.
Limitation
- ⚠️ Negative EPS (-2.88 ₹).
- 📉 Collapse in quarterly PAT (-401 Cr.).
- 📊 No dividend yield (0.00%).
- 💸 Overvalued P/B ratio (~4.5) despite losses.
Company Negative News
- 📉 Decline in quarterly profits with heavy losses.
- ⚠️ Reduction in DII holdings (-0.04%).
Company Positive News
- 📈 Slight increase in FII holdings (+0.22%).
- 💹 Sectoral demand in infrastructure provides long-term potential if profitability recovers.
Industry
- ⚡ Infrastructure and power transmission sector supported by government investment.
- 📊 Industry PE at 56.3, highlighting RTN India’s weak fundamentals compared to peers.
Conclusion
⚖️ RTN India faces severe earnings challenges and lacks dividend support, making it a high-risk investment. Entry is advisable only around 30–33 ₹ for speculative investors. Long-term holding should be avoided until profitability stabilizes and fundamentals improve.
Would you like me to also prepare a risk-reward scenario analysis to highlight potential upside versus downside for RTN India?