Check Before You Invest : RattanIndia Power Ltd

Snapshot

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

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

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

RattanIndia Power Ltd is a average quality company, based on a somewhat consistent 10-year financial track record.

Q.3 Is RattanIndia Power Ltd undervalued or overvalued?

RattanIndia Power Ltd appears Undervalued, as its key valuation ratios are below with their past averages.

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

RattanIndia Power Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of RattanIndia Power Ltd?

RattanIndia Power Ltd revenue growth is -2.4% for FY-2025, which is below its 5-year CAGR of 13.11%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of RattanIndia Power Ltd?

RattanIndia Power Ltd Return on capital employed is 8.44% for FY-2025, which is in line with its 5-year historical median of 8.44%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of RattanIndia Power Ltd?

RattanIndia Power Ltd Return on Asset is 2.18%, which is in line with its 5-year historical median of 2.18%, indicating stable asset utilization efficiency.

Q.4 Return on Equity (ROE) of RattanIndia Power Ltd?

RattanIndia Power Ltd Return on equity is 4.61% for FY-2025, which is in line with its 5-year historical median of 4.61%, indicating the business is making similar use of its shareholders capital.

Q.5 Cash conversion cycle of RattanIndia Power Ltd?

RattanIndia Power Ltd Cash conversion cycle is 257 days, in line with its 5-year historical median of 264 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	0.33	0.29
ROE	4.61	4.61
ROCE	8.44	8.44
Cash Conversion Cycle	257 days	264 days

Q.6 Gross Profit margin of RattanIndia Power Ltd?

RattanIndia Power Ltd Gross profit margin which is the profit after deduction of direct costs, is 14.1% for FY-2025, which is below its 5-year median of 17.6%, indicating decreasing margins.

Q.7 Operating Profit Margin of RattanIndia Power Ltd?

RattanIndia Power Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 16.72% for FY-2025, which is below its 5-year median of 23.55% indicating decreasing margins.

Q.8 Net Profit Margin of RattanIndia Power Ltd?

RattanIndia Power Ltd Net Profit Margin is 6.58% for FY-2025, is in line with with its 5-year median of 6.58%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin	14.1	17.6
Operating Profit Margin	16.72	23.55
Net Profit Margin	6.58	6.58

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

RattanIndia Power Ltd Debt-to-Equity ratio is 0.74, which is above with the industry average of 0.39, indicating higher debt levels in the industry.

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

RattanIndia Power Ltd Debt to cash flow from operations is 8.64, which is at a unhealthy level.

Ownership & governance

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

Promoters hold 44.06% of the RattanIndia Power Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

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

RattanIndia Power Ltd revenue CAGR is 13.11%, compared to the industry median CAGR of 0.59%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	-2.4	0.6
Gross Profit Growth	6.7	-0.1
Operating Profit Growth	-13.3	NAN
Net Profit Growth	0	-3.2

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.33	0.13
ROE	4.61	2.44
ROCE	8.44	4.39
Cash Conversion Cycle (days)	256.97	63

Valuation & price assessment

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

Over the last 9 year(s), the stock has delivered a CAGR of 0.4% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	0.4%	27.8%	45.2%	-3.4%

Q.3 Valuation ratios of RattanIndia Power Ltd vs historical?

The current P/E is higher that its historical median.

Q.4 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	42.07	14.24	27.19
Price to Book	1.14	0.81	1.80
Price to Sales	1.74	1.41	6.78
EV to EBITDA	9.84	7.73	13.53

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