Check Before You Invest : Reliance Power Ltd

Q: Which industry/sub-sector does Reliance Power Ltd belong to?

Reliance Power Ltd belongs to the Power sector, operating specifically within the Power Generation/Distribution segment.

Q: Is Reliance Power Ltd a good quality company?

Reliance Power Ltd is a average quality company, based on a somewhat consistent multi-year financial track record. This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q: Is Reliance Power Ltd undervalued or overvalued?

Reliance Power Ltd appears Undervalued, as its key valuation ratios are lower than their past averages. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: 39.91, Historic Median: -. Price to Book, Current: 0.75, Historic Median: 0.80. Price to Sales, Current: 1.46, Historic Median: 1.43. EV to EBITDA, Current: 8.93, Historic Median: 11.92

Q: Is Reliance Power Ltd a good buy now?

Reliance Power 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

Q: Revenue growth of Reliance Power Ltd?

Reliance Power Ltd revenue growth is -3.9% for FY-2025, which is below its 5-year CAGR of 0.05%, indicating slower growth.

Q: Gross Profit margin of Reliance Power Ltd?

Reliance Power Ltd Gross profit margin which is the profit after deduction of direct costs, is 9.6% for FY-2025, which is above its 5-year median of 2.6%, indicating increasing margins.

Q: Operating Profit Margin of Reliance Power Ltd?

Reliance Power Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 21.05% for FY-2025, which is below its 5-year median of 25.57% indicating decreasing margins.

Q: Net Profit Margin of Reliance Power Ltd?

Reliance Power Ltd Net Profit Margin is 38.87% for FY-2025, is above its 5-year median of -4.56%, indicating increasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 9.6, Historic Median: 2.6. Operating Profit Margin (%), Current: 21.05, Historic Median: 25.57. Net Profit Margin (%), Current: 38.87, Historic Median: -4.56

Q: Return on Asset of Reliance Power Ltd?

Reliance Power Ltd Return on Asset is 6.91%, which is above its 5-year historical median of -0.7%, indicating improved asset utilization efficiency.

Q: Return on capital employed (ROCE) of Reliance Power Ltd?

Reliance Power Ltd Return on capital employed is 16.81% for FY-2025, which is above its 5-year historical median of 6.57%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 13.5%, indicating value creation.

Check Before You Invest : Reliance Power Ltd

Snapshot

Q.1 Which industry/sub-sector does Reliance Power Ltd belong to?

Reliance Power Ltd belongs to the Power sector, operating specifically within the Power Generation/Distribution segment.

Q.2 Is Reliance Power Ltd a good quality company?

Reliance Power Ltd is a average quality company, based on a somewhat consistent multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Reliance Power Ltd undervalued or overvalued?

Reliance Power Ltd appears Undervalued, as its key valuation ratios are lower than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	5-year Historic Median
Price to Earnings	39.91	-
Price to Book	0.75	0.80
Price to Sales	1.46	1.43
EV to EBITDA	8.93	11.92

Q.4 Is Reliance Power Ltd a good buy now?

Reliance Power 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

We have analysed the performance of the company on the following:

How has it performed on generating Profits?
By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.
How efficiently has it utilized Capital?
By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.
How is it managing its Debt?
By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Reliance Power Ltd?

Reliance Power Ltd revenue growth is -3.9% for FY-2025, which is below its 5-year CAGR of 0.05%, indicating slower growth.

Q.2 Gross Profit margin of Reliance Power Ltd?

Reliance Power Ltd Gross profit margin which is the profit after deduction of direct costs, is 9.6% for FY-2025, which is above its 5-year median of 2.6%, indicating increasing margins.

Q.3 Operating Profit Margin of Reliance Power Ltd?

Reliance Power Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 21.05% for FY-2025, which is below its 5-year median of 25.57% indicating decreasing margins.

Q.4 Net Profit Margin of Reliance Power Ltd?

Reliance Power Ltd Net Profit Margin is 38.87% for FY-2025, is above its 5-year median of -4.56%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	9.6	2.6
Operating Profit Margin (%)	21.05	25.57
Net Profit Margin (%)	38.87	-4.56

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Reliance Power Ltd?

Reliance Power Ltd Return on Asset is 6.91%, which is above its 5-year historical median of -0.7%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Reliance Power Ltd?

Reliance Power Ltd Return on capital employed is 16.81% for FY-2025, which is above its 5-year historical median of 6.57%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 13.5%, indicating value creation.

Q.7 Return on Equity (ROE) of Reliance Power Ltd?

Reliance Power Ltd Return on equity is 22.53% for FY-2025, which is above its 5-year historical median of -2.97%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Reliance Power Ltd?

Reliance Power Ltd Cash conversion cycle is 98 days, below its 5-year historical median of 120 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover (x)	0.18	0.15
ROE (%)	22.53	-2.97
ROCE (%)	16.81	6.57
Cash Conversion Cycle	98 days	120 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Reliance Power Ltd?

Reliance Power Ltd Debt-to-Equity ratio is 1.04, which is above the industry average of 0.44, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Reliance Power Ltd?

Reliance Power Ltd Debt to cash flow from operations is 7.82, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Reliance Power Ltd?

Q.1 Promoter shareholding and pledge status of Reliance Power Ltd?

Promoters hold 24.98% of the Reliance Power Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Reliance Power Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Reliance Power Ltd vs industry peers?

Reliance Power Ltd revenue CAGR is 0.05%, compared to the industry median CAGR of 0%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	-3.9	-
Gross Profit Growth (%)	0	-0.1
Operating Profit Growth (%)	34.7	0.1
Net Profit Growth (%)	0	-3

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	0.18	0.12
ROE (%)	22.53	2.44
ROCE (%)	16.81	4.39
Cash Conversion Cycle (days)	98.5	62

Valuation & price assessment

Q.1 Stock return of Reliance Power Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of -5.5% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	-5.5%	30.6%	33.4%	-38.9%

Q.2 Valuation ratios of Reliance Power Ltd vs historical?

The current P/E ratio of 39.91 is higher than its historical median of , indicating that the stock is trading above its historical average valuation.

Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	39.91	-	27.37
Price to Book	0.75	0.80	1.82
Price to Sales	1.46	1.43	6.75
EV to EBITDA	8.93	11.92	13.61

Check more companies

1. SJVN

2. Acme Solar Holdings

3. CESC

4. Vedanta Power

5. Clean Max Env. Energ

6. JP Power Ventures

7. Indian Energy Exch.

8. Reliance Power

9. GMR Power and Urban

10. PTC India

Check trending companies

1. Dixon Technologies (India) Ltd.

2. Eris Lifesciences Ltd.

3. Netweb Technologies India Ltd.

4. Motherson Sumi Wiring India Ltd.

5. SBI Life Insurance Company Ltd.

Check Before You Invest : Reliance Power Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

Check more companies

Check trending companies

Create stable, long-term investment portfolio with strong, consistent stocks.

About MoneyWorks4Me

Our Vision

What Makes MoneyWorks4Me Different

Our Approach: Ensuring compounding work its magic on client portfolio.

Name of the IA registered with SEBI:	The Alchemists Ark Pvt. Ltd.
Logo:
Trade/Brand Name of IA:	MoneyWorks4Me Investment Advisers
Brand Logo:
SEBI Registration Number:	INA000013323 Validity – May 16, 2019 – Perpetual
Registration:	Non-Individual
BSE Enlistment No:	1187
Address:	B-101, Signet Corner Building, Balewadi Phata, Baner, Pune, Maharashtra 411045
Compliance officer Details:	Name: Shrikant Jagtap Email: shrikant.jagtap@moneyworks4me.com Telephone: +919860359463 Address: Same as IA
Grievance Officer Details:	Name: Mukta Vaze Email: mukta.vaze@moneyworks4me.com Telephone: +91 98609 19463 Address: Same as IA
Principal Officer Details:	Name: Atharva Bhide Email: atharva.bhide@moneyworks4me.com Telephone: +91 91758 99463 Address: Same as IA
Standard Warning:	Investment in securities market are subject to market risks. Read all the related documents carefully before investing.
Disclaimer:	Registration granted by SEBI, enlistment with exchange and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.