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INVESTMENT INSIGHTS

Check Before You Invest : Reliance Communications Ltd

BSE: 532712 NSE: RCOM ISIN: INE330H01018
  |   Sector:  Telecom   |   Industry:  Telecommunication - Service Provider

Snapshot

Q.1 Which industry/sub-sector does Reliance Communications Ltd belong to?
Reliance Communications Ltd belongs to the Telecom sector, operating specifically within the Telecommunication - Service Provider segment.
Q.2 Is Reliance Communications Ltd a good quality company?
Reliance Communications Ltd is a quality company, based on a 10 year financial track record.
Q.3 Is Reliance Communications Ltd undervalued or overvalued?
Reliance Communications Ltd appears Undervalued, as its key valuation ratios are below with their past averages.
Q.4 Is Reliance Communications Ltd a good buy now?
Reliance Communications Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Reliance Communications Ltd?
Reliance Communications Ltd revenue growth is -6.9% for FY-2025 , which is above its 5 year CAGR of -19.9% , indicating faster growth.
Q.2 Gross Profit margin of Reliance Communications Ltd?
Reliance Communications Ltd Gross profit margin which is the profit after deduction of direct costs, is -20.7% for FY-2025 , which is in line with its 5 year median of -20.7% , indicating stable margins.
Q.3 Operating Profit Margin of Reliance Communications Ltd?
Reliance Communications Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -6.67% for FY-2025 , which is above its 5 year median of -11.72% indicating increasing margins.
Q.4 Net Profit Margin of Reliance Communications Ltd?
Reliance Communications Ltd Net Profit Margin is -60% for FY-2025 , is in line with with its 5 year median of -60%, indicating stable margins.
Current Level Historic Median
Gross Profit Margin -20.7 -20.7
Operating Profit Margin -6.67 -11.72
Net Profit Margin -60 -60
Q.5 Return on Asset of Reliance Communications Ltd?
Reliance Communications Ltd Return on Asset is -0.41(x), which is above its 5 year historical median of -0.56(x), indicating improved asset utilization efficiency.
Q.6 Return on Equity (ROE) of Reliance Communications Ltd?
Reliance Communications Ltd Return on equity is 0% for FY-2025 , which is in line with its historical median of 0%, indicating the business is making similar use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Reliance Communications Ltd?
Reliance Communications Ltd Return on capital employed is 0% for FY-2025 , which is below its estimated weighted average cost of capital(WACC) 14%, indicating value preservation.
Q.8 Cash conversion cycle of Reliance Communications Ltd?
Reliance Communications Ltd Cash conversion cycle is -3640 , below its historical median of -3005 , indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.01 0.01
ROE - -
ROCE - -
Cash Conversion Cycle -3640 -3005
Q.9 Debt to Equity ratio of Reliance Communications Ltd?
Reliance Communications Ltd Debt-to-Equity ratio is -0.58 , which is above with the industry average of -0.73 , indicating higher debt levels in the industry.
Q.10 Debt to cash flow from operations of Reliance Communications Ltd?
Reliance Communications Ltd Debt to cash flow from operations is -4437.11 , which is at a unhealthy level, indicating the business is not able to service its debt comfortably.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Reliance Communications Ltd?
Promoters hold 0.77% of the Reliance Communications Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Reliance Communications Ltd vs industry peers?
Reliance Communications Ltd revenue CAGR is -19.88% , compared to the industry median CAGR of 1.67% , indicating slower growth and losing its market share.
Profit Metrics
Current Level Industry Median
Revenue 270 332
Gross Profit -55.9 0.7
Operating Profit -64 7.2
Net Profit -162 0.3
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.01 0.86
ROE - -
ROCE - 2.27
Cash Conversion Cycle -3640.49 -5

Valuation & price assessment

Q.1 Stock return of Reliance Communications Ltd over the last decade?
Over the last 9 years, the stock has delivered a CAGR of -32.7% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price -32.7% -9.5% -14.4% -35.3%
Q.3 Valuation ratios of Reliance Communications Ltd vs historical?
The current P/E is similar that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings - 0.00 41.09
Price to Book - 0.00 0.69
Price to Sales 1.23 0.94 2.07
EV to EBITDA -307.72 0.00 12.28

Check more companies

1. Railtel Corp. India
2. Tata Teleservice(Mah
3. Hathway Cable & Data
4. MTNL
5. Reliance Comm
6. GTL
7. Rama Telecom
8. Steelman Telecom
9. Accord Synergy
10. City Online Services
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