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. More Details
Slightly overvalued with imperfect balance sheet.
Share Price & News
How has Reliance Communications's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: RCOM is more volatile than 75% of Indian stocks over the past 3 months, typically moving +/- 9% a week.
Volatility Over Time: RCOM's weekly volatility (9%) has been stable over the past year, but is still higher than 75% of Indian stocks.
7 Day Return
IN Wireless Telecom
1 Year Return
IN Wireless Telecom
Return vs Industry: RCOM exceeded the Indian Wireless Telecom industry which returned -0.8% over the past year.
Return vs Market: RCOM underperformed the Indian Market which returned 54.1% over the past year.
Long-Term 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
Is Reliance Communications undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: RCOM (₹3.3) is trading below our estimate of fair value (₹12.3)
Significantly Below Fair Value: RCOM is trading below fair value by more than 20%.
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.
How is Reliance Communications forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?
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.
How has Reliance Communications performed over the past 5 years?
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 47.2% 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 (1.8%).
Return on Equity
High ROE: RCOM's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.
How is Reliance Communications's financial position?
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.
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 27.1% per year.
What is Reliance Communications's current dividend yield, its reliability and sustainability?
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.
Current Payout to Shareholders
Dividend Coverage: RCOM is not paying a notable dividend for the Indian market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of RCOM's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.
How experienced are the management team and are they aligned to shareholders interests?
Average management 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...
Experienced Management: RCOM's management team is considered experienced (3.6 years average tenure).
Experienced Board: RCOM's board of directors are considered experienced (3.8 years average tenure).
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.
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Reliance Communications Limited's company bio, employee growth, exchange listings and data sources
- Name: Reliance Communications Limited
- Ticker: RCOM
- Exchange: NSEI
- Founded: 2004
- Industry: Wireless Telecommunication Services
- Sector: Telecom
- Market Cap: ₹8.986b
- Shares outstanding: 2.72b
- Website: https://www.rcom.co.in
Number of Employees
- Reliance Communications Limited
- Dhirubhai Ambani Knowledge City
- H Block
- Navi Mumbai
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. It of...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/08/02 15:42|
|End of Day Share Price||2021/08/02 00:00|
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.