SEBI Reg. Investment Advisor

Download App

MoneyWorks4Me

Check Before You Invest : Reliance Power Ltd

BSE: 532939 NSE: RPOWER ISIN: INE614G01033
  |   Sector:  Power   |   Industry:  Power Generation/Distribution

Snapshot

Q.1 Is Reliance Power Ltd a good quality company?
Reliance Power Ltd is a quality company, based on a 10 year financial track record .
Q.2 Is Reliance Power Ltd undervalued or overvalued?
Reliance Power Ltd appears Undervalued , as its key valuation ratios are above with their past averages.
Q.3 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

Q.1 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 0% , indicating increasing margins.
Q.2 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 above its 5 year median of 0% indicating increasing margins.
Q.3 Net Profit Margin of Reliance Power Ltd?
Reliance Power Ltd Net Profit Margin is 38.87% for FY-2025 , is above with its 5 year median of 0%, indicating increasing margins.
Q.4 Return on Asset of Reliance Power Ltd?
Reliance Power Ltd Return on Asset is 6.91(x), which is above its 5 year historical median of 0(x), indicating improved asset utilization efficiency.
Q.5 Return on Equity (ROE) of Reliance Power Ltd?
Reliance Power Ltd Return on equity is 22.53% for FY-2025 , which is above its historical median of 0%, indicating the business is making better use of its shareholders capital.
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 estimated weighted average cost of capital(WACC) 13.5%, indicating value creation .
Q.7 Cash conversion cycle of Reliance Power Ltd?
Reliance Power Ltd Cash conversion cycle is 98 , above its historical median of 0 , indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Q.8 Debt to Equity ratio of Reliance Power Ltd?
Reliance Power Ltd Debt-to-Equity ratio is 1.04 , which is above with the industry average of 0 , indicating higher debt levels in the industry.
Q.9 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, indicating the business is not able to service its debt comfortably.

Ownership & governance

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)

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.

Valuation & price assessment

Q.1 Stock return of Reliance Power Ltd over the last decade?
Over the last 9 years, the stock has delivered a CAGR of -6.9% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price -6.9% 39.5% 26.3% -37%
Q.3 Valuation ratios of Reliance Power Ltd vs historical?
The current P/E is higher 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 36.9 0.00 32.46
Price to Book 0.69 0.09 1.75
Price to Sales 1.35 0.14 6.05
EV to EBITDA 8.63 8.18 12.85

About MoneyWorks4Me

MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.

Our Vision

To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.

What Makes MoneyWorks4Me Different

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

MoneyWorks4Me ensures this through:

×