RTNINDIA - Investment Analysis

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

Investment Rating: 2.9

📊 Fundamental Analysis Summary

RattanIndia Enterprises Ltd (RTNINDIA) is a tech-focused mid-cap company operating in emerging sectors like electric vehicles, drones, and e-commerce. While its business model is futuristic, its financial metrics and valuation raise caution for long-term investors.

🔍 Key Metrics Breakdown

Metric Value Interpretation

Market Cap ₹7,871 Cr Mid-cap, high volatility

Current Price ₹57.0 Near 200 DMA, neutral zone

Book Value ₹6.67 P/B ~8.5 → Overvalued

Stock P/E 97.5 Extremely overvalued vs Industry PE (38.5)

PEG Ratio 1.32 Fair growth valuation, but questionable earnings

ROE 9.17% Below ideal for long-term compounding

ROCE 12.7% Acceptable, but not stellar

Dividend Yield 0.00% No passive income

Debt-to-Equity 1.00 High leverage

PAT Qtr -₹356 Cr Deep losses, worsening trend

EPS ₹0.61 Weak earnings base

📉 Technical & Trend Analysis

RSI (41.7): Mildly oversold, but not a strong reversal signal

MACD (-0.25): Bearish crossover

Volume: Slightly above average, but no breakout momentum

DMA 50 & 200: Flat, indicating sideways movement

Price Trend: Down ~31% YoY, underperforming peers

✅ Long-Term Investment Outlook

RTNINDIA is not a strong candidate for long-term investment at current levels due to

High valuation with negative earnings

Weak profitability and high debt

No dividend payout

Volatile business segments with execution risk

However, if you're bullish on India's EV and tech transformation, this could be a high-risk, high-reward speculative play.

🎯 Ideal Entry Price Zone

Based on technical support and valuation

Buy Zone: ₹45–₹50

Near historical support and breakout retest zone

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Offers better risk-reward for long-term accumulation

🧭 Exit Strategy (If You Already Hold)

If you're holding RTNINDIA

🔄 Short-Term Traders

Exit near ₹65–₹70, which is a resistance zone

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Use trailing stop-loss below ₹55

🕰️ Long-Term Investors

Hold only if you believe in the EV/e-commerce growth story

Reassess if ROE/ROCE don’t improve above 15% in next 2–3 quarters

Exit if price breaks below ₹45 with volume confirmation

⏳ Suggested Holding Period

Speculative Hold: 6–12 months

Long-Term Hold: Only if quarterly losses reduce and growth visibility improves

Would you like a peer comparison with other tech or EV-focused mid-caps like Greaves Cotton or Olectra Greentech?

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