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.
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.
Value Creation ⓘ
Value Creation Index Colour Code Guide ⓘ
|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||-0.7||NA||-|
Growth Parameters ⓘ
Growth Parameters Colour Code Guide ⓘ
|YoY Gr. Rt. %||-||5%||33.4%||49.2%||0.9%||-7.7%||-14.5%||-7.8%||4.9%||-5.4%||-|
|Adj EPS ⓘ||3.3||3.4||3.5||3.3||4||3.1||-2.6||-5.2||0.8||-1.7||-2|
|YoY Gr. Rt. %||-||2.1%||3.6%||-5.7%||22.8%||-23%||-184.2%||NA||NA||-320.5%||-|
|BVPS (₹) ⓘ||66.2||69.6||73.6||72.3||76.3||75.7||62||42.3||43.7||36.1||36.1|
|Adj Net Profit ⓘ||925||943||980||924||1,133||873||-734||-1,450||219||-586||-690|
|Cash Flow from Ops. ⓘ||705||2,310||1,399||4,574||4,705||4,365||4,223||4,543||4,149||3,613||-|
|Debt/CF from Ops. ⓘ||39||13||23.7||7.4||7||7.3||7.2||6.3||6.2||6.4||-|
CAGR Colour Code Guide ⓘ
|9 Years||5 Years||3 Years||1 Years|
|Adj EPS ⓘ||-193%||-184.3%||NA||-320.5%|
Key Financial Parameters ⓘ
Performance Ratio Colour Code Guide ⓘ
|Return on Equity % ⓘ||5.1||5||4.9||4.5||5.5||4.1||-3.8||-9.9||1.8||-4.7||-5.6|
|Op. Profit Mgn % ⓘ||34.8||37||37.5||43.3||43.9||46.3||48.9||40.5||46.4||37||34.7|
|Net Profit Mgn % ⓘ||18.8||18.2||14.2||9||10.9||9.1||-8.9||-19.2||6.2||-7.2||-9.1|
|Debt to Equity ⓘ||1.5||1.5||1.6||1.7||1.5||1.5||1.8||2.4||2.1||1.9||-|
|Working Cap Days ⓘ||587||526||492||565||728||766||815||684||514||544||0|
|Cash Conv. Cycle ⓘ||78||102||121||122||126||112||121||135||120||142||0|
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%
|TTM EPS (₹)||-0.8||-2|
|TTM Sales (₹ Cr.)||38.1||7,552|
|BVPS (₹.) ⓘ||26.5||36.1|
|Reserves (₹ Cr.) ⓘ||5,603||8,888|
|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|
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 Powerâ€™s Sasan Project to earn certified emission reduction (CER) credits, each equivalent to one tonne of CO2.Reliance Powerâ€™s Project is the worldâ€™s largest power generation plant ever registered.