NSEI:RPOWER

Stock Analysis Report

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Market Cap

₹47.8b

Last Updated

2021/06/21 16:26 UTC

Data Sources

Company Financials

Executive Summary

Reliance Power Limited, together with its subsidiaries, engages in the generation of power in India. More Details


Snowflake Analysis

Fair value with questionable track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: RPOWER is more volatile than 75% of Indian stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: RPOWER's weekly volatility (9%) has been stable over the past year, but is still higher than 75% of Indian stocks.


Market Performance


7 Day Return

26.7%

RPOWER

-2.0%

IN Renewable Energy

-0.8%

IN Market


1 Year Return

403.0%

RPOWER

63.0%

IN Renewable Energy

60.1%

IN Market

Return vs Industry: RPOWER exceeded the Indian Renewable Energy industry which returned 61.9% over the past year.

Return vs Market: RPOWER exceeded the Indian Market which returned 60.8% over the past year.


Shareholder returns

RPOWERIndustryMarket
7 Day26.7%-2.0%-0.8%
30 Day132.2%12.9%5.0%
90 Day249.5%21.5%11.0%
1 Year403.0%403.0%71.4%63.0%62.6%60.1%
3 Year-51.5%-51.5%38.5%22.6%42.2%35.2%
5 Year-66.5%-66.5%41.5%19.6%96.6%81.8%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RPOWER (₹16.6) is trading below our estimate of fair value (₹117.14)

Significantly Below Fair Value: RPOWER is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: RPOWER is poor value based on its PE Ratio (23.7x) compared to the Indian Renewable Energy industry average (11.7x).

PE vs Market: RPOWER is poor value based on its PE Ratio (23.7x) compared to the Indian market (21.6x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: RPOWER is good value based on its PB Ratio (0.4x) compared to the IN Renewable Energy industry average (0.8x).


Future Growth

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

10.0%

Forecasted Utilities 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 Power 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 Power performed over the past 5 years?

-59.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RPOWER has a large one-off gain of ₹2.9B impacting its March 31 2021 financial results.

Growing Profit Margin: RPOWER became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: RPOWER has become profitable over the past 5 years, growing earnings by -59% per year.

Accelerating Growth: RPOWER has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: RPOWER has become profitable in the last year, making it difficult to compare its past year earnings growth to the Renewable Energy industry (-18.3%).


Return on Equity

High ROE: RPOWER's Return on Equity (3.1%) is considered low.


Financial Health

How is Reliance Power's financial position?


Financial Position Analysis

Short Term Liabilities: RPOWER's short term assets (₹57.2B) do not cover its short term liabilities (₹159.3B).

Long Term Liabilities: RPOWER's short term assets (₹57.2B) do not cover its long term liabilities (₹210.4B).


Debt to Equity History and Analysis

Debt Level: RPOWER's debt to equity ratio (149.1%) is considered high.

Reducing Debt: RPOWER's debt to equity ratio has reduced from 167% to 149.1% over the past 5 years.

Debt Coverage: RPOWER's debt is well covered by operating cash flow (20.1%).

Interest Coverage: RPOWER's interest payments on its debt are not well covered by EBIT (1x coverage).


Balance Sheet


Dividend

What is Reliance Power current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

High Dividend: Unable to evaluate RPOWER'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 RPOWER's dividends per share have been stable in the past.

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


Current Payout to Shareholders

Dividend Coverage: RPOWER is not paying a notable dividend for the Indian market.


Future Payout to Shareholders

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


Next Steps

Management

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

3.5yrs

Average management tenure


CEO

Raja Krotthapalli (62 yo)

3.08yrs

Tenure

₹29,800,000

Compensation

Mr. Raja Gopal Krotthapalli, ME, MBA is Chief Executive Officer of Reliance Power Ltd. since May 02, 2018. He is Whole-Time Director at Reliance Power Ltd. since July 1, 2018. He is a well acknowledged lea...


CEO Compensation Analysis

Compensation vs Market: Raja's total compensation ($USD401.83K) is about average for companies of similar size in the Indian market ($USD388.19K).

Compensation vs Earnings: Raja's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: RPOWER's management team is considered experienced (3.5 years average tenure).


Board Members

Experienced Board: RPOWER's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.


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


Key Information

  • Name: Reliance Power Limited
  • Ticker: RPOWER
  • Exchange: NSEI
  • Founded: 1995
  • Industry: Independent Power Producers and Energy Traders
  • Sector: Utilities
  • Market Cap: ₹47.799b
  • Shares outstanding: 2.81b
  • Website: https://www.reliancepower.co.in

Number of Employees


Location

  • Reliance Power Limited
  • Reliance Centre, South Block
  • Third Floor, Near Prabhat Colony
  • Mumbai
  • Maharashtra
  • 400055
  • India

Listings


Biography

Reliance Power Limited, together with its subsidiaries, engages in the generation of power in India. Its portfolio of power projects is based on coal, gas, hydro, wind, and solar energy. The company has an...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/21 16:26
End of Day Share Price2021/06/21 00:00
Earnings2021/03/31
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.