Reliance Power Ltd - Stock Valuation and Financial Performance

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

Reliance Power Share Price

27.34 -0.32 -1.16%
as on 12-Jul'24 16:01

DeciZen - make an informed investing decision on Reliance Power

Overall Rating
Bole Toh

1. Quality

2. Valuation

Undervalued

3. Price Trend

Semi Strong

Reliance Power stock performance -

mw4me loader
P/E Ratio (CD):
0.00
Market Cap:
10,982.4 Cr.
52-wk low:
14.9
52-wk high:
34.4

Is Reliance Power Ltd an attractive stock to invest in?

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 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 Undervalued zone.

3. Is Reliance Power Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Semi Strong which suggest that the price of Reliance Power Ltd is likely to Rise-somewhat 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 performed well in some of the past ten years indicating its past ten year financial track record is somewhat good

Value Creation

Value Creation Index Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
ROCE % 3%3.4%5.2%5.8%5.4%-1.3%-4.2%4.9%2.5%1.8%-
Value Creation
Index
-0.8-0.8-0.6-0.6-0.6-1.1-1.3-0.7-0.8-0.9-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 5,1756,90310,29910,3969,5938,2017,5627,9347,5037,5147,893
Sales YoY Gr.-33.4%49.2%0.9%-7.7%-14.5%-7.8%4.9%-5.4%0.1%-
Adj EPS 3.43.53.343.1-10.4-14.40.8-2.8-3-5.2
YoY Gr.-3.6%-5.7%22.8%-23.5%-435%NANA-459%NA-
BVPS (₹) 69.673.672.176.275.76242.343.734.130.828.9
Adj Net
Profit
9439809241,133868-2,902-4,042219-953-1,128-2,069
Cash Flow from Ops. 2,3101,3994,5744,7054,3654,2234,5434,1493,6134,024-
Debt/CF from Ops. 1323.77.477.37.26.36.26.45.3-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 4.2%-4.8%-0.2%0.1%
Adj EPS -198.8%-199.5%NANA
BVPS-8.7%-16.4%-10%-9.5%
Share Price -11.5% 45.4% 26.8% 79.6%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
Return on
Equity %
54.94.55.54.1-15-27.61.8-7.9-9.7-17.2
Op. Profit
Mgn %
3737.543.343.946.349.440.546.43725.614.8
Net Profit
Mgn %
18.214.2910.99.1-35.4-566.2-12.1-14.1-26.2
Debt to
Equity
1.51.61.71.51.51.82.42.121.80.8
Working Cap
Days
526492564725761809681495522501108
Cash Conv.
Cycle
102121122126112121135120142150-302

Recent Performance Summary

Debt to equity has declined versus last 3 years average to 1.84

Return on Equity is Poor

Sales growth has been subdued in last 3 years -0.21%

Sales growth is not so good in last 4 quarters at 5.53%

Latest Financials - Reliance Power Ltd.

Standalone Consolidated
TTM EPS (₹) 0.1 -5.2
TTM Sales (₹ Cr.) 0 7,893
BVPS (₹.) 23.4 28.9
Reserves (₹ Cr.) 5,380 7,597
P/BV 1.17 0.95
PE 248.58 0.00
From the Market
52 Week Low / High (₹) 14.88 / 34.35
All Time Low / High (₹) 1.00 / 565.94
Market Cap (₹ Cr.) 10,982
Equity (₹ Cr.) 4,017
Face Value (₹) 10
Industry PE 25.7

Management X-Ray of Reliance Power:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *4.8924.5024.5024.504.580.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of Reliance Power

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24
Sales6,90310,29910,3969,5938,2017,5627,9347,5037,5147,893
Operating Expenses 4,3185,8845,8895,2074,2324,5994,3594,7685,6496,735
Manufacturing Costs4,1044,9334,9434,2663,1203,1543,3853,3133,9664,166
Material Costs0000000000
Employee Cost 66176183187187209156174179184
Other Costs 1487757647549261,2368181,2811,5052,385
Operating Profit 2,5864,4144,5064,3863,9692,9633,5752,7351,8651,157
Operating Profit Margin (%) 37.5%42.9%43.3%45.7%48.4%39.2%45.1%36.5%24.8%14.7%
Other Income 299323496278333700455184340368
Interest 1,0742,6832,8432,9263,2063,0542,5392,7212,5042,451
Depreciation 5247017347598388361,0831,0771,0171,062
Exceptional Items 0000-3,153-4,004401,037-40
Profit Before Tax 1,2861,3531,425979-2,896-4,232412-879-279-2,028
Tax 2584583211441824-154464214
Profit After Tax 1,0288951,104836-2,913-4,255427-923-343-2,242
PAT Margin (%) 14.9%8.7%10.6%8.7%-35.5%-56.3%5.4%-12.3%-4.6%-28.4%
Adjusted EPS (₹)3.73.23.93.0-10.5-14.50.7-2.8-1.3-5.2
Dividend Payout Ratio (%)0%31%0%0%0%0%0%0%0%0%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24

Equity and Liabilities

Shareholders Fund 20,63220,22721,36821,23517,37711,86912,24611,58111,51511,614
Share Capital 2,8052,8052,8052,8052,8052,8052,8053,4003,7354,017
Reserves 17,82717,42218,56218,43014,5729,0649,4418,1817,7807,597
Minority Interest2000013531568162216920
Debt30,78131,63529,93528,02327,03024,17220,62517,40214,66511,024
Long Term Debt28,22128,73926,29024,20118,09119,86116,83114,21412,2409,409
Short Term Debt2,5602,8973,6453,8228,9394,3113,7933,1882,4251,614
Trade Payables514473380361427434415499519449
Others Liabilities 10,73912,52213,40512,57113,26015,58816,04718,82620,22620,764
Total Liabilities 62,66764,85865,08762,19058,09553,41650,90149,93048,61743,851

Fixed Assets

Gross Block35,98336,47038,20639,72043,84948,35349,16750,39952,16152,898
Accumulated Depreciation2,3491,9553,3564,8407,9469,78011,97714,09116,38518,459
Net Fixed Assets33,63434,51534,85134,88135,90338,57437,19036,30835,77634,439
CWIP 11,1647,3867,4036,9134,2763,6151,9122,0202,3201,293
Investments 86187379928022430363739209
Inventories1,0471,1241,0297291,0121,014874828925961
Trade Receivables2,9113,5252,9882,4782,7382,3612,4103,2142,6801,655
Cash Equivalents 1,1711,677958916271284315644651918
Others Assets11,88015,75917,06015,99313,6717,5388,1646,8796,2264,375
Total Assets 62,66764,85865,08762,19058,09553,41650,90149,93048,61743,851

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24
Cash Flow From Operating Activity 1,3994,5744,7054,3654,2234,5434,1493,6134,0243,174
PBT 1,2861,3531,425979-2,938-4,232412-879-279-2,028
Adjustment 1,3053,2883,3353,6277,3858,2113,4974,4873,4505,183
Changes in Working Capital -96515132-32-19668225314191153
Tax Paid -227-219-88-211-28-119-40-49-58-34
Cash Flow From Investing Activity -3,630-1,348-2,14235460-247486284-354-192
Capex -2,160-2,029-575-447-43-544-134-268-38451
Net Investments -69272157585761980036-32
Others -777609-1,7232162699619552-6-211
Cash Flow From Financing Activity 695-3,194-3,389-4,311-4,839-4,200-4,615-3,849-3,623-2,734
Net Proceeds from Shares 0000000000
Net Proceeds from Borrowing 2,451-332-1,405-2,247-3,155-1,867-1,763-1,741-1,226-1,304
Interest Paid -2,855-2,861-2,732-2,992-2,867-2,114-1,834-1,583-1,836-1,450
Dividend Paid 0-28000000000
Others 1,1002787489281,184-219-1,017-524-56120
Net Cash Flow -1,53532-826408-55696194846248
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24
Ratios
ROE (%)5.134.385.313.92-15.09-29.093.54-7.75-2.97-19.39
ROCE (%)4.577.487.887.280.62-2.667.525.066.571.34
Asset Turnover Ratio0.120.160.160.150.140.140.150.150.150.17
PAT to CFO Conversion(x)1.365.114.265.22N/AN/A9.72N/AN/AN/A
Working Capital Days
Receivable Days107114114104116123110137143100
Inventory Days44383833394943414344
Payable Days0000000000

Reliance Power Ltd Stock News

Reliance Power Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Reliance Power on 12-Jul-2024 16:01 is ₹27.34.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 12-Jul-2024 16:01 the market cap of Reliance Power stood at ₹10,982.4.
The latest P/E ratio of Reliance Power as of 12-Jul-2024 16:01 is 248.6.
The latest P/B ratio of Reliance Power as of 12-Jul-2024 16:01 is 1.17.
The 52-week high of Reliance Power is ₹34.35 and the 52-week low is ₹14.88.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Reliance Power is ₹0.00 ( Cr.) .

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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