Reliance Power Ltd Stock Analysis

BSE: 532939 | NSE: RPOWER | Power Generation/Distribution | Small Cap

BSE Share Price Aug 12, 18:03
13.42 -0.22 (-1.61%)

DeciZen - Make an Informed Decision on Reliance Power

Overall Rating

1. Quality

2. Valuation

Fair

3. Price Trend

Reliance Power Price Chart

P/E Ratio (CD) :
0.00
Market Cap :
4,563 Cr.
52-wk low :
9.2
52-wk high :
19.3
Bole Toh?

1. Is Reliance Power Ltd a good quality company?

Past 10 year’s financial track record analysis by Moneyworks4me indicates that Reliance Power Ltd is a below average quality company.

2. Is Reliance Power Ltd undervalued or overvalued?

The key valuation ratios of Reliance Power Ltd's currently when compared to its past seem to suggest it is in the Fair zone.

3. Is Reliance Power Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Weak which suggest that the price of Reliance Power Ltd is likely to Fall in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of Reliance Power:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Reliance Power Ltd has not performed well majority of the past ten years indicating its past ten year financial track record is not good

Value Creation

Value Creation Index Colour Code Guide

Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
ROCE % 3.4%3%3.4%5.2%5.8%5.5%3%1.6%4.9%2.8%-
Value Creation Index -0.7-0.8-0.8-0.6-0.6-0.6-0.8-0.9-0.7NA-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 4,9275,1756,90310,29910,3969,5938,2017,5627,9347,5037,552
YoY Gr. Rt. %-5%33.4%49.2%0.9%-7.7%-14.5%-7.8%4.9%-5.4%-
Adj EPS 3.33.43.53.343.1-2.6-5.20.8-1.7-2
YoY Gr. Rt. %-2.1%3.6%-5.7%22.8%-23%-184.2%NANA-320.5%-
BVPS (₹) 66.269.673.672.376.375.76242.343.736.136.1
Adj Net Profit 9259439809241,133873-734-1,450219-586-690
Cash Flow from Ops. 7052,3101,3994,5744,7054,3654,2234,5434,1493,613-
Debt/CF from Ops. 391323.77.477.37.26.36.26.4-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 4.8%-6.3%-2.9%-5.4%
Adj EPS -193%-184.3%NA-320.5%
BVPS -6.5-13.9-16.5-17.3
Share Price -17.6% -19.6% 55.5% 16.2%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
Return on Equity % 5.154.94.55.54.1-3.8-9.91.8-4.7-5.6
Op. Profit Mgn % 34.83737.543.343.946.348.940.546.43734.7
Net Profit Mgn % 18.818.214.2910.99.1-8.9-19.26.2-7.2-9.1
Debt to Equity 1.51.51.61.71.51.51.82.42.11.9-
Working Cap Days 5875264925657287668156845145440
Cash Conv. Cycle 781021211221261121211351201420

Recent Performance Summary

Debt to equity has declined versus last 3 years average to 1.88

Return on Equity is Poor

Sales growth has been subdued in last 3 years -2.92%

Sales growth is not so good in last 4 quarters at -3.98%

Latest Financials - Reliance Power Ltd.

Standalone Consolidated
TTM EPS (₹) -0.8 -2
TTM Sales (₹ Cr.) 38.1 7,552
BVPS (₹.) 26.5 36.1
Reserves (₹ Cr.) 5,603 8,888
P/BV 0.51 0.37
PE 0.00 0.00
From the Market
52 Week Low / High (₹) 9.15 / 19.25
All Time Low / High (₹) 1.00 / 565.94
Market Cap (₹ Cr.) 4,563
Equity (₹ Cr.) 3,400.1
Face Value (₹) 10
Industry PE 18.6

Management X-Ray of Reliance Power :

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *53.7561.4253.2017.9117.9117.914.894.8924.5024.50
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

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Key Ratios of Reliance Power

Adj EPS (Rs.)
Sales (Cr.)
ROE (%)
ROCE (%)

News

About Reliance Power Ltd

Reliance Power was incorporated as Bawana Power Private Limited on January 17, 1995, its name changed to Reliance Delhi Power Private Limited by a special resolution of the members passed at the EGM on February 1, 1995. On January 23, 2004 the Name got changed to Reliance EGen Private Limited by a special resolution of the members passed at the EGM. On March 5, 2004 the name changed to Reliance Energy Generation Private Limited by a special resolution of the members passed at the EGM. Finally on July 4, 2007 the name got changed to Reliance Power Limited by a special resolution of the members passed at an EGM.

The company was established to carry on all or any of the business of producers, manufacturers, generators, suppliers, distributors, transformers, converters, transmitters, processors, developers, stores, procurers, carriers and dealers in electricity, all form of energy and any such products and by-products derived from such business including without limitation, steam, fuels, ash, conversion of ash into bricks and any product derived from or connected with any other form of energy, including, without limitation to conventional sources such as heat, thermal, hydel and/or from non-conventional sources such as tidalwave, wind, solar, geothermal, biological, biogas and CBM.

Reliance Power Limited is part of the Reliance Anil Dhirubhai Ambani Group and is established to develop, construct and operate power projects domestically and internationally. The Company on its own and through subsidiaries is currently developing 13 medium and large sized power projects with a combined planned installed capacity of 28,200 MW, one of the largest portfolios of power generation assets under development in India. Our 13 power projects are planned to be diverse in geographic location, fuel type, fuel source and off-take, and each project is planned to be strategically located near an available fuel supply or load center. The identified project sites are located in western India (12,220 MW), northern India (9,080 MW) and northeastern India (2,900 MW) and southern India (4,000 MW).

They include six coal-fired projects (14,620 MW) to be fueled by reserves from captive mines and supplies from India and abroad, two gas-fired projects (10,280 MW) to be fueled primarily by reserves from the Krishna Godavari Basin (the 'KG Basin') off the east coast of India, and four hydroelectric projects (3,300 MW), three of them in Arunachal Pradesh and one in Uttarakhand. Reliance Power has acquired the two ultra mega power projects of 4,000 MW each at Sasan in Madhya Pradesh and Krishnapatnam in Andhra Pradesh. The 7,480 MW project to be located at Dadri in Uttar Pradesh is expected to be the largest gas-fired power project at a single location in the world. We intend to sell the power generated by these projects under a combination of long-term and short-term PPAs to state-owned and private distribution companies and industrial consumers.

Reliance Power's 4,000 MW Sasan Ultra Mega Power Project (SUMPP)  using super-critical technology has been registered  with Clean Development Mechanism Executive Board (CDM-EB) of United Nations Framework Convention on Climate Change (UNFCCC). The  registration with  CDM-EB allows Reliance Power’s Sasan Project  to earn certified emission reduction (CER) credits, each equivalent to one tonne of CO2.Reliance Power’s Project is  the world’s largest power generation plant ever registered.

 
Reliance Power has won Euromoney’s ‘Deal of the year - 2010’ for its Sasan Ultra Mega Power Project.

Milestones:

  • January 1995 The Company was originally incorporated as Bawana Power Private Limited.
  • March 2004 The Company was converted to a public company.
  • April, 2005 The Company entered into a MoU with the Government of Maharashtra for setting up of thermal power plant of 1,200 MW and a gas based power plant of 2,800 MW at a suitable location. The plant is now being set up at Shahapur in Raigad district of Maharashtra.
  • May 2005 Letter of Award for Urthing Sobla hydro power project awarded to REL*
  • September 2005 Letter of Award for Siyom project awarded to REL*
  • September 2005 Letter of Award for Tato II project awarded to REL*
  • April 2006 REL entered into a MoU for setting up a power plant of 300 MW at Butibori in Nagpur district of Maharashtra.*
  • November 2006 The Company acquired RPSCL from Aditya Birla Power Supply Company Limited which company is setting up 1,200 MW Coal Based Power Plant at Rosa, Shahjahanpur, Uttar Pradesh.
  • August 2007 The Company acquired SPL from Power Finance Corporation Limited, which is setting up 3,960 MW pithead power plant at Sasan, Madhya Pradesh.
  • September 29, 2007 Amalgamation of RPUPL with the Company becomes effective.
  • November 30, 2007 Letter of Award for Krishnapatnam UMPP awarded to Reliance Power
  • October 28, 2010- RPower places an order with Shanghai Electric Group Co (SEC) for 30,000 megawatt (MW) capacity of boiler, turbine, generator packages (BTG) for its coal based power plants, the world’s largest BTG order ever and is valued at around $10 billion.
  • February 4,2011- Reliance Power’s wholly owned subsidiary Sasan Power becomes eligible for Carbon Credits as per accreditation accorded by the executive board of the Clean Development Mechanism (CDM).
  • July10,2011- Reliance Power’s imported coal based 3960 MW Krishnapatnam Ultra Mega Power Project (KUMPP), was registered with Clean Development Mechanism Executive Board (CDM-EB) of United Nations Framework Convention on Climate Change (UNFCCC).
  •  Reliance Powerered 3,960 MW Krishnapatnam Ultra Mega Power Project
    - Reliance Powerered 4,000 MW Sasan Power Project in Madhya Pradesh, gets approval for carbon credits
  • 2012
    Reliance Power - Reliance Power entered into a Strategic Partnership with China Datang

Subsidiary:

  • Sasan Power Limited
  • Maharashtra Energy Generation Limited
  • Vidarbha Industries Power Limited
  • Rosa Power Supply Company Limited
  • Tato Hydro Power Private Limited
  • MP Power Generation Private Limited
  • Siyom Hydro Power Private Limited
  • Urthing Sobla Hydro Power Private Limited
  • Kalai Power Private Limited
  • Coastal Andhra Power Limited

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