Mehabe score: 3 G Factor: 1 Piotski Score: 6 The stock has a rating OBSERVE & HOLD. The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 1 and Piotski score of 6.
Description
RattanIndia Power Limited is engaged in the business of dealing in power generation, distribution, trading and transmission and other ancillary and incidental activities.Site:RTNPOWER
Market Cap:
Rs 3,007 cr
Price:
5.6
Trading pe:
x
Book-value:
-0.89/share
Div yield:
0.00 %
Earning yield:
5.95%
Face-value:
10.0/share
52week high:
5.51
52week low:
1.85
Technical Analysis
Stock trades at 5.6, above its 50dma 3.6. It also trades above its 200dma 2.89. The stock remains bullish on techicals
The 52 week high is at 5.51 and the 52week low is at 1.85
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
-Promoter holding has increased by 4.86% over last quarter.
Weakness
– has low interest coverage ratio.
– has a low return on equity of -81.67% for last 3 years.
-Promoters have pledged 88.68% of their holding.
-Earnings include an other income of Rs.663.78 Cr.
– has high debtors of 315.89 days.
-‘s cost of borrowing seems high
-Promoter holding has decreased over last 3 years: -9.91%
Competition
– The industry trades at a mean P/E of 23.2x. Adani Green trades at the industry’s max P/E of 795.08x. RTNPOWER trades at a P/E of x
– Industry’s mean G-Factor is 3.1 while the mean Piotski score is 9.0. RTNPOWER has a G-Factor of 1 and Piotski scoreof 6.
– Average 1 month return for industry is 12.1%. The max 1- month return was given by Rattanindia Pow.: a return of 83.61 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 862.0 cr compared to Rs 294.0 cr for period ended Mar 2020, a rise of 193.2%
Operating Profits reported at Rs 218.0 cr for period ended Mar 2021 vis-vis 61.0 for period ended Mar 2020 .
Operating Margins expanded 454.2 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 0.07 compared to Rs -0.14 for previous quarter ended Dec 2020 and Rs -1.04 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 1560.0 cr for period ended Mar 2021 vis-vis sales of Rs 1774.0 cr for the period ended Mar 2020, a fall of 13.7%. The 3 year sales cagr stood at -8.8%.
Operating margins expanded to 41.0% for period ended Mar 2021 vis-vis 29.0% for period ended Mar 2020, expansion of 1200.0 bps.
Net Profit reported at Rs -942.0 cr for period ended Mar 2021 vis-vis sales of Rs 165.0 cr for the period ended Mar 2020, falling 0%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has improved its Return on Equity (RoE) metric. The RoE on Last Year basis was 133.0% compared to -82.0% over the last 3 Years. – The stock has given a return of 203% on a 1 Year basis vis-vis a return of 13% over the last 3 Years. – The compounded sales growth on a TTM bassis is -44% vis-vis a compounded sales growth of 8% over the last 3 Years. – The compounded profit growth on a TTM basis is -1751% vis-vis a compounded profit growth of 31% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 0.16% vis-vis 0.0% for Dec 2020 – Public shareholding has fallen for the period ended Mar 2021. The Mar 2021 public holding stood at 40.5% vis-vis 44.2% for Dec 2020
Conclusion
– has reduced debt.
-Promoter holding has increased by 4.86% over last quarter. – has low interest coverage ratio.
– has a low return on equity of -81.67% for last 3 years.
-Promoters have pledged 88.68% of their holding.
-Earnings include an other income of Rs.663.78 Cr.
– has high debtors of 315.89 days.
-‘s cost of borrowing seems high
-Promoter holding has decreased over last 3 years: -9.91%
Fundamentally, the stock remains weak on business fundamentals. Weak near term results have dampened and questioned business drivers. We suggest to wait for a upturn in business performance.
Technically, the stock trades above its 50 DMA 3.6 and is trading at 5.6 It has shown near term bullish momentum contrary to business fundamentals. We suggest to observe price action. However as investors, who like to avoid timing the markets, we suggest to avoid the stock
