company background image
RCOM

Reliance Communications NSEI:RCOM Stock Report

Last Price

₹2.60

Market Cap

₹7.1b

7D

0%

1Y

48.6%

Updated

16 May, 2022

Data

Company Financials
RCOM fundamental analysis
Snowflake Score
Valuation0/6
Future Growth0/6
Past Performance0/6
Financial Health2/6
Dividends0/6

RCOM Stock Overview

Reliance Communications Limited provides enterprise voice, data, video, and IT infrastructure solutions to enterprises, over-the-top (OTT) players, and network operators in India and internationally.

Reliance Communications Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Reliance Communications
Historical stock prices
Current Share Price₹2.60
52 Week High₹5.05
52 Week Low₹1.70
Beta1.95
1 Month Change-10.35%
3 Month Change-14.75%
1 Year Change48.57%
3 Year Change26.83%
5 Year Change-91.27%
Change since IPO-99.15%

Recent News & Updates

May 13
Estimating The Intrinsic Value Of Reliance Communications Limited (NSE:RCOM)

Estimating The Intrinsic Value Of Reliance Communications Limited (NSE:RCOM)

Does the May share price for Reliance Communications Limited ( NSE:RCOM ) reflect what it's really worth? Today, we...

Shareholder Returns

RCOMIN Wireless TelecomIN Market
7D0%-0.2%-3.2%
1Y48.6%-2.7%9.0%

Return vs Industry: RCOM exceeded the Indian Wireless Telecom industry which returned -2.9% over the past year.

Return vs Market: RCOM exceeded the Indian Market which returned 9.7% over the past year.

Price Volatility

Is RCOM's price volatile compared to industry and market?
RCOM volatility
RCOM Average Weekly Movement5.6%
Wireless Telecom Industry Average Movement3.7%
Market Average Movement7.2%
10% most volatile stocks in IN Market10.0%
10% least volatile stocks in IN Market4.7%

Stable Share Price: RCOM is less volatile than 75% of Indian stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: RCOM's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2004614Juergen Hasehttps://www.rcom.co.in

Reliance Communications Limited provides enterprise voice, data, video, and IT infrastructure solutions to enterprises, over-the-top (OTT) players, and network operators in India and internationally. The company offers business Internet, network, cloud networking, data center, enterprise voice, cloud telephony, and access number services; and collaboration services, which include audio and Web conferencing, as well as voice and various value-added wholesaling services for carriers and service providers. It also provides colocation, IT infrastructure and connectivity, and managed services.

Reliance Communications Fundamentals Summary

How do Reliance Communications's earnings and revenue compare to its market cap?
RCOM fundamental statistics
Market Cap₹7.08b
Earnings (TTM)-₹1.70b
Revenue (TTM)₹6.08b

1.2x

P/S Ratio

-4.2x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
RCOM income statement (TTM)
Revenue₹6.08b
Cost of Revenue₹4.72b
Gross Profit₹1.36b
Other Expenses₹3.06b
Earnings-₹1.70b

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

May 30, 2022

Earnings per share (EPS)-0.62
Gross Margin22.37%
Net Profit Margin-27.96%
Debt/Equity Ratio-80.1%

How did RCOM perform over the long term?

See historical performance and comparison

Valuation

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

Valuation Score

0/6

Valuation Score 0/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry

Share Price vs. Fair Value

Below Fair Value: RCOM (₹2.6) is trading above our estimate of fair value (₹1.96)

Significantly Below Fair Value: RCOM is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: RCOM is unprofitable, so we can't compare its PE Ratio to the Asian Wireless Telecom industry average.

PE vs Market: RCOM is unprofitable, so we can't compare its PE Ratio to the Indian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate RCOM's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: RCOM has negative assets, so we can't compare its PB Ratio to the XA Wireless Telecom industry average.


Future Growth

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

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


20.1%

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.


Past Performance

How has Reliance Communications performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-16.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: RCOM is currently unprofitable.

Growing Profit Margin: RCOM is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: RCOM is unprofitable, and losses have increased over the past 5 years at a rate of 16.3% per year.

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

Earnings vs Industry: RCOM is unprofitable, making it difficult to compare its past year earnings growth to the Wireless Telecom industry (5.8%).


Return on Equity

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


Financial Health

How is Reliance Communications's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Stable Cash Runway

  • Forecast Cash Runway

Financial Position Analysis

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

Long Term Liabilities: RCOM 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: RCOM has negative shareholder equity, which is a more serious situation than a high debt level.

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


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable RCOM has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: RCOM is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 43.8% per year.


Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage

Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

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


Earnings Payout to Shareholders

Earnings Coverage: RCOM is not paying a notable dividend for the Indian market.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as RCOM has not reported any payouts.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.3yrs

Average management tenure


CEO

Juergen Hase

5.83yrs

Tenure

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...


Leadership Team

Experienced Management: RCOM's management team is considered experienced (4.3 years average tenure).


Board Members

Experienced Board: RCOM's board of directors are considered experienced (4.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: Reliance Communications Limited
  • Ticker: RCOM
  • Exchange: NSEI
  • Founded: 2004
  • Industry: Wireless Telecommunication Services
  • Sector: Telecom
  • Implied Market Cap: ₹7.080b
  • Shares outstanding: 2.72b
  • Website: https://www.rcom.co.in

Number of Employees


Location

  • Reliance Communications Limited
  • Dhirubhai Ambani Knowledge City
  • 1st Floor, H Block
  • Navi Mumbai
  • Maharashtra
  • 400710
  • India

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/05/16 00:00
End of Day Share Price2022/05/16 00:00
Earnings2021/12/31
Annual Earnings2021/03/31


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.