BSE:532712

Stock Analysis Report

Reliance Communications

Executive Summary

Reliance Communications Limited provides enterprise voice, data, video, and IT infrastructure solutions to enterprises and OTTs in India and internationally.

Snowflake

Fundamentals

Weak fundamentals or lack of information.


Similar Companies

Share Price & News

How has Reliance Communications's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-2.7%

532712

2.5%

IN Wireless Telecom

1.6%

IN Market


1 Year Return

-93.9%

532712

-4.9%

IN Wireless Telecom

0.8%

IN Market

Return vs Industry: 532712 underperformed the Indian Wireless Telecom industry which returned -4.9% over the past year.

Return vs Market: 532712 underperformed the Indian Market which returned 0.8% over the past year.


Shareholder returns

532712IndustryMarket
7 Day-2.7%2.5%1.6%
30 Day-16.3%-0.2%1.5%
90 Day-55.8%-4.3%-3.3%
1 Year-93.9%-93.9%0.7%-4.9%2.7%0.8%
3 Year-98.5%-98.5%-2.8%-16.7%22.0%16.0%
5 Year-99.3%-99.3%-13.1%-30.6%42.3%29.3%

Price Volatility Vs. Market

How volatile is Reliance Communications's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Reliance Communications undervalued compared to its fair value and its price relative to the market?


In this section, we usually try to help investors determine whether Reliance Communications is trading at an attractive price based on the cash flow it is expected to produce in the future. But as Reliance Communications has not provided consistent financial data, and the stock also has no analyst forecast or coverage, its intrinsic value cannot be reliably calculated by extrapolating past data or using analyst consensus cash flow predictions.

This is quite a rare situation as 89% of companies covered by Simply Wall St do have a valuation analysis.


Next Steps

  • Take a look at our analysis of 532712’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  • When valuing a company like this, investors focus more on how they perceive the size of the opportunity, the company's ability to deliver and scale, and the strength of the team. While we are not analysing this type of data at the moment, if you don’t know where to start, we recommend reading through Reliance Communications regulatory filings.
  • Explore potentially undervalued companies in the Telecom industry.

Future Growth

How is Reliance Communications forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

16.6%

Forecasted Telecom industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Reliance Communications has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Reliance Communications performed over the past 5 years?

-34.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: 532712 is unprofitable, and losses have increased over the past 5 years at a rate of -34.6% per year.

Accelerating Growth: Unable to compare 532712's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 532712 is unprofitable, making it difficult to compare its past year earnings growth to the Wireless Telecom industry (-3%).


Return on Equity

High ROE: 532712's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Return on Assets

ROA vs Industry: 532712 is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: 532712 is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Reliance Communications's financial position?


Financial Position Analysis

Short Term Liabilities: 532712 has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: 532712 has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: 532712 has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: 532712's has negative shareholder equity, so we do not need to check if its debt has reduced over time.

Debt Coverage: 532712's debt is not well covered by operating cash flow (0.8%).

Interest Coverage: Insufficient data to determine if 532712's interest payments on its debt are well covered by EBIT.


Balance Sheet

Inventory Level: 532712 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 532712 has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


Next Steps

Dividend

What is Reliance Communications's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%0.6%markettop25%2.5%industryaverage4.1%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate 532712's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 532712's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if 532712's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 532712's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 532712 is not paying a notable dividend for .


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 532712's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

What is the CEO of Reliance Communications's salary, the management and board of directors tenure and is there insider trading?

3.3yrs

Average management tenure


CEO

Juergen Hase 0

3.3yrs

Tenure

0

Mr. Juergen Hase has been Chief Executive Officer for IOT Business for Reliance Group at Reliance Communications Ltd. and Reliance Industries Limited since July 7, 2016. Mr. Hase has worked in the global t ...


Management Age and Tenure

3.3yrs

Average Tenure

Experienced Management: 532712's management team is considered experienced (3.3 years average tenure).


Board Age and Tenure

2.0yrs

Average Tenure

55yo

Average Age

Experienced Board: 532712's board of directors are not considered experienced ( 2 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Braham Singh

    Senior Vice President of Global Product Management

    • Tenure: 4.3yrs
  • Rakesh Gupta (43yo)

    Company Secretary and Compliance Officer

    • Tenure: 0.3yrs
  • Prakash Gokarn

    Head of Corporate Strategy for 3G Business

    • Tenure: 0yrs
  • Juergen Hase

    Chief Executive Officer for IOT Business - Reliance Group

    • Tenure: 3.3yrs
  • Manikantan Iyer (54yo)

    CFO & Non Independent Executive Director

    • Tenure: 2yrs
    • Compensation: ₹17.33m

Board Members

  • Anil Ambani (60yo)

    Chairman

    • Tenure: 0yrs
    • Compensation: ₹160.00k
  • Punit Garg (54yo)

    Non-Executive Director

    • Tenure: 2yrs
    • Compensation: ₹22.86m
  • Ryna Karani (52yo)

    Independent Director

    • Tenure: 1.9yrs
    • Compensation: ₹520.00k
  • Suresh Rangachar (55yo)

    Non Executive Non Independent Director

    • Tenure: 1.9yrs
  • Manjari Kacker (66yo)

    Non-Executive Non-Independent Director

    • Tenure: 5.1yrs
    • Compensation: ₹520.40k
  • Chhaya Virani (65yo)

    Independent Director

    • Tenure: 1.9yrs
    • Compensation: ₹440.00k
  • Manikantan Iyer (54yo)

    CFO & Non Independent Executive Director

    • Tenure: 2yrs
    • Compensation: ₹17.33m

Company Information

Reliance Communications Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Reliance Communications Limited
  • Ticker: 532712
  • Exchange: BSE
  • Founded: 2004
  • Industry: Wireless Telecommunication Services
  • Sector: Telecom
  • Market Cap: ₹1.906b
  • Shares outstanding: 2.72b
  • Website: https://www.rcom.co.in

Number of Employees


Location

  • Reliance Communications Limited
  • H Block
  • 1st Floor
  • Navi Mumbai
  • Maharashtra
  • 400710
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
532712BSE (Mumbai Stock Exchange)YesEquity SharesININRMar 2006
RCOMNSEI (National Stock Exchange of India)YesEquity SharesININRMar 2006
RECOMBDL (Bourse de Luxembourg)GDR EACH REPR 1 ORD SHS 'REGS'LUUSDAug 2006

Biography

Reliance Communications Limited provides enterprise voice, data, video, and IT infrastructure solutions to enterprises and OTTs in India and internationally. It owns and operates a telecommunications netwo ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/15 12:41
End of Day Share Price2019/10/15 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.