Watchlist Manager
Reliance Power Ltd
NSE:RPOWER
Watchlist
Price:23.6 INR-1.05% Market Closed
Updated:Dec 16, 2023
Section:
Intrinsic Value
Reliance Power Ltd. is a holding company, which engages in the provision of power generation.[ Read More ]
The intrinsic value of oneRPOWERstock under the Base Case scenario is28.02INR.Compared to the current market price of 23.6 INR,Reliance Power LtdisUndervalued by 16%.
Key Points:
23.6 INR
Intrinsic Value+16%
DCF Value-26%
Relative Value+39%
Wall St Target+91%
Positive Free Cash Flow36.4B INR
Positive Gross Profit37.5B INR
View All
23.6 INR
Intrinsic Value+16%
DCF Value-26%
Relative Value+39%
Wall St Target+91%
Positive Free Cash Flow36.4B INR
Positive Gross Profit37.5B INR
ROE is Increasing-28% > -4%
Positive Operating Income9.2B INR
Positive 1-Year Revenue Growth1%
Negative 3-Years Revenue Growth0%
Declining ROIC4% > 2%
Low ROIC2%
Negative ROE-4%
Low 3-Year Average ROIC4%
Negative Net Income-4.7B INR
Negative 3-Year Average ROE-7%
Low D/E0.89
Positive Net Debt107B INR
Low Altman Z-Score0.24
Low Interest Coverage0.5
Collapse
RPOWERIntrinsic Value
Base Case
28.02INR
Undervaluation 16%
Intrinsic Value
Price
Worst Case
Base Case
Best Case
Valuation History
Reliance Power Ltd
Valuation History
Reliance Power Ltd
Historical Profit
Current Valuation
Price & Value Correlation
Value CAGR
Calculating
Intrinsic Value History...
Our system is conducting in-depth analyses to map out the stock's valuation journey. Thank you for waiting.
Fundamental Analysis
Financials
NEW
NEW
Balance Sheet Decomposition
Reliance Power Ltd
Balance Sheet Decomposition
Reliance Power Ltd
| Current Assets | 52.3B |
| Cash & Short-Term Investments | 8.1B |
| Receivables | 32.6B |
| Other Current Assets | 11.6B |
| Non-Current Assets | 430B |
| Long-Term Investments | 395m |
| PP&E | 375B |
| Intangibles | 413m |
| Other Non-Current Assets | 54.1B |
| Current Liabilities | 191B |
| Accounts Payable | 4.9B |
| Other Current Liabilities | 186B |
| Non-Current Liabilities | 163B |
| Long-Term Debt | 115B |
| Other Non-Current Liabilities | 47.2B |
Fundamental Scores
RPOWER Profitability Score
Profitability Due Diligence
RPOWER Profitability Score
Profitability Due Diligence
Reliance Power Ltd's profitability score is51/100.The higher the profitability score, the more profitable the company is.
Positive Free Cash Flow
Positive Gross Profit
ROE is Increasing
Positive Operating Income
51/100
Profitability
Score
Reliance Power Ltd's profitability score is51/100.The higher the profitability score, the more profitable the company is.
RPOWER Solvency Score
Solvency Due Diligence
RPOWER Solvency Score
Solvency Due Diligence
Reliance Power Ltd's solvency score is19/100.The higher the solvency score, the more solvent the company is.
Long-Term Solvency
Low D/E
Short-Term Solvency
Positive Net Debt
19/100
Solvency
Score
Reliance Power Ltd's solvency score is19/100.The higher the solvency score, the more solvent the company is.
Wall St
Price Targets
RPOWER Price Targets Summary
Reliance Power Ltd
RPOWER Price Targets Summary
Reliance Power Ltd
Wall Street analysts forecast RPOWER stock price to rise over the next 12 months.
According to Wall Street analysts, the average 1-year price target forRPOWERis 45.14 INR.
Lowest
Price Target
Not Available
Average
Price Target
45.14INR
91% Upside
Highest
Price Target
Not Available
View Analyst Estimates
RPOWER Analyst Estimates
Competitive Landscape
Filter by:
All Countries
Sort by: Market Cap
Close
Shareholder Return
RPOWER Price
Reliance Power Ltd
RPOWER Price
Reliance Power Ltd
1M1M
+4%
6M6M
+47%
1Y1Y
+50%
3Y3Y
+529%
5Y5Y
-16%
10Y10Y
-66%
Annual Price Range
23.6
52w Low
9.15
52w High
24.5
Price Metrics
| Average Annual Return | 54.63% |
| Standard Deviation of Annual Returns | 173.25% |
| Max Drawdown | -97% |
Shares Statistics
| Market Capitalization | 89.9BINR |
| Shares Outstanding | 3 811 180 032 |
| Percentage of Shares Shorted | N/A |
Company Profile
Reliance Power Ltd
Description
Reliance Power Ltd. is a holding company, which engages in the provision of power generation. The company is headquartered in Navi Mumbai, Maharashtra and currently employs 1,314 full-time employees. The company went IPO on 2008-11-02. The firm on its own and through its subsidiaries has a range of portfolio of power generation capacity, both in operation as well as capacity under development. The firm is involved in coal, gas, hydro, wind and solar based energy projects. The portfolio of the Company also includes Ultra Mega Power Projects (UMPPs). The firm has approximately 6000 megawatt (MW) operational power generation assets. The projects under development include three coal-fired projects; one gas-fired projects and 12 hydroelectric projects, six of them in Arunachal Pradesh, five in Himachal Pradesh and one in Uttarakhand. Its project portfolio also includes 3,960 MW Sasan Ultra Mega Power Project, located in Madhya Pradesh. UMPPs are a part of the Indian government's initiative to collaborate with power generation companies.
Contact
MAHARASHTRA
Navi Mumbai
H Block, First Floor,, Dhirubhai Ambani Knowledge City,
+912230385119
IPO
2008-11-02
Employees
1 314
Officers
VP, Mang., Company Sec. & Compliance Officer
Mr. Murli Manohar Purohit
Pres & Chief Bus. Officer
Mr. Shrikant D. Kulkarni
Chief Financial Officer
Mr. Akshiv Singhla
Project Head
Mr. A. K. Bahadur
Commercial Head (Non- Technical)
Mr. Vijay C. Agarwal
Chief Project Director
Mr. Karanam Prakasa Rao
See Also
Discover More
What is the Intrinsic Value of one RPOWER stock?
The intrinsic value of oneRPOWERstock under the Base Case scenario is28.02INR.
Is RPOWER stock undervalued or overvalued?
Compared to the current market price of 23.6 INR,Reliance Power LtdisUndervalued by 16%.
Join more than 90,900+ value investors using Alpha Spread
Create a free account
© 2023 Alpha Spread Limited. All Rights Reserved.
www.alphaspread.com is not operated by a broker, a dealer, or a registered investment adviser. Under no circ*mstances does any information posted on www.alphaspread.com represent a recommendation to buy or sell a security. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. The information on this site is in no way guaranteed for completeness, accuracy or in any other way. In no event shall Alpha Spread Limited be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or available on www.alphaspread.com, or relating to the use of, or inability to use, www.alphaspread.com or any content, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance.
What are valuation scenarios?
The intrinsic value depends on the future of the company. But the future is not predetermined. As is the intrinsic value.
There is no absolute intrinsic value. The true value lies somewhere between the worst case and best case scenarios. Knowing the full range of possible stock intrinsic values gives a complete picture of the investment risks and opportunities.
Close
What is valuation range?
The intrinsic value depends on the future of the company. But the future is not predetermined. As is the intrinsic value.
Because of this, the intrinsic value is not an absolute number, but rather a range. We present this range in a form of a bear, base and bull case scenarios.
Knowing the full range of possible stock intrinsic values gives a complete picture of the investment risks and opportunities.
Close
What is historical valuation?
Unlock insights into a stock's past with the Historical Valuation tool, charting the critical junctions where market price and intrinsic value converge and diverge.
This feature isn’t just a window into history; it's a lens focusing on the patterns that signal opportunity and risk, vital for sharpening your investment strategies.
Key Benefits:
Investment Simulation
Leverage historical profit figures to simulate and validate a value investment strategy, refining your approach with solid historical benchmarks.
Spot Contrarian Opportunities
Look for stocks that have been historically overvalued but are now trading below their intrinsic value.
Easily Identify Value Traps
Avoid stocks that are always undervalued and never reach their intrinsic value.
Close
What is price return decomposition?
Introduction
Price return decomposition is a method of analyzing the factors that contribute to the changes in the market capitalization of a company.
The price return decomposition breaks down the market cap return into two main components: the change in the price-to-earnings (P/E) multiple and the change in company earnings (as well as the change in revenue and net margin).
Change in P/E multiple
The change in the P/E multiple reflects the effect of changes in investor expectations and sentiment towards the company. A higher P/E multiple means that investors are willing to pay more for each dollar of earnings, indicating higher expectations for future growth. Conversely, a lower P/E multiple indicates lower expectations.
Change in Earnings, Revenue, and Net Margin
The change in earnings, on the other hand, represents the actual changes in the company's earnings over the given period.
The change in revenue and net margin are two other factors that can impact a company's market cap. An increase in revenue indicates that the company is generating more sales, while an improvement in net margin indicates that the company is becoming more efficient and generating more profit from each dollar of sales.
Close
As an enthusiast with a demonstrable depth of knowledge in financial analysis and stock valuation, let's delve into the concepts used in the provided article related to Alpha Spread and the valuation of Reliance Power Ltd (NSE:RPOWER).
1. Alpha Spread:
- Overview: Alpha Spread is a financial analysis platform that provides tools and dashboards for evaluating stock investments. It offers various features, including watchlist management, DCF (Discounted Cash Flow) valuation, relative valuation, analyst estimates, profitability analysis, solvency analysis, financial statements, and historical valuation.
2. Reliance Power Ltd (NSE:RPOWER):
- Business Profile: Reliance Power Ltd is a holding company engaged in power generation. It has a diverse portfolio of power generation assets, including coal, gas, hydro, wind, and solar-based projects. The company operates in the utilities industry in India.
3. Intrinsic Value:
- Definition: Intrinsic value is the perceived inherent or true value of a stock, calculated based on fundamental analysis. It represents what an investor believes a stock is really worth, irrespective of its current market price.
- Calculation: The intrinsic value of RPOWER under the Base Case scenario is calculated as 28.02 INR per share. This implies that, according to the analysis, the stock is undervalued by 16% compared to the current market price of 23.6 INR.
4. Valuation Metrics:
- DCF Valuation: Discounted Cash Flow valuation method is used to estimate the value of an investment based on its expected future cash flows, discounted to present value.
- Relative Valuation: Valuation based on comparison with similar companies or industry benchmarks.
- Wall Street Estimates: Analysts' forecasts for the stock's future price, in this case, indicating a 91% upside potential.
5. Financial Performance:
- Profitability Metrics: Positive Free Cash Flow, Positive Gross Profit, Increasing ROE (Return on Equity), and Positive Operating Income.
- Solvency Metrics: Low Debt-to-Equity ratio (D/E), Positive Net Debt, and an analysis indicating Long-Term Solvency as "Low."
6. Historical Valuation:
- Purpose: Understanding how market price and intrinsic value have behaved over time.
- Benefits: Investment simulation, spotting contrarian opportunities, and identifying value traps.
7. Price Return Decomposition:
- Definition: A method analyzing factors contributing to changes in market capitalization. It breaks down returns into changes in the P/E multiple and changes in company earnings, revenue, and net margin.
- Factors Considered: Change in investor sentiment (reflected in P/E multiple) and changes in company fundamentals (earnings, revenue, net margin).
In conclusion, Alpha Spread provides a comprehensive suite of tools and analyses, including intrinsic value calculation, financial statement analysis, and historical valuation. The article emphasizes the undervaluation of Reliance Power Ltd based on various metrics, offering investors a detailed perspective on the stock's potential.
