Reliance Industrial Infrastructure Limited
Reliance Industrial Infrastructure Limited Fundamental Analysis
Reliance Industrial Infrastructure Limited (RIIL.NS) shows weak financial fundamentals with a PE ratio of 95.58, profit margin of 27.28%, and ROE of 2.65%. The company generates $0.5B in annual revenue with weak year-over-year growth of -14.80%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 19.5/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze RIIL.NS's fundamental strength across five key dimensions:
Efficiency Score
WeakRIIL.NS struggles to generate sufficient returns from assets.
Valuation Score
WeakRIIL.NS trades at a premium to fair value.
Growth Score
WeakRIIL.NS faces weak or negative growth trends.
Financial Health Score
ExcellentRIIL.NS maintains a strong and stable balance sheet.
Profitability Score
ModerateRIIL.NS maintains healthy but balanced margins.
Key Financial Metrics
Is RIIL.NS Expensive or Cheap?
P/E Ratio
RIIL.NS trades at 95.58 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, RIIL.NS's PEG of 27.04 indicates potential overvaluation.
Price to Book
The market values Reliance Industrial Infrastructure Limited at 2.50 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 270.90 times EBITDA. This signals the market has high growth expectations.
How Well Does RIIL.NS Make Money?
Net Profit Margin
For every $100 in sales, Reliance Industrial Infrastructure Limited keeps $27.28 as profit after all expenses.
Operating Margin
Core operations generate -20.06 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $2.65 in profit for every $100 of shareholder equity.
ROA
Reliance Industrial Infrastructure Limited generates $2.34 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Reliance Industrial Infrastructure Limited generates limited operating cash flow of $-134.05M, signaling weaker underlying cash strength.
Free Cash Flow
Reliance Industrial Infrastructure Limited generates weak or negative free cash flow of $-134.05M, restricting financial flexibility.
FCF Per Share
Each share generates $-8.88 in free cash annually.
FCF Yield
RIIL.NS converts -1.13% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
95.58
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
27.04
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.50
vs 25 benchmark
P/S Ratio
Price to sales ratio
26.04
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.00
vs 25 benchmark
Current Ratio
Current assets to current liabilities
9.14
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.03
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
-0.02
vs 25 benchmark
How RIIL.NS Stacks Against Its Sector Peers
| Metric | RIIL.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 95.58 | 26.49 | Worse (Expensive) |
| ROE | 2.65% | 1280.00% | Weak |
| Net Margin | 27.28% | -41709.00% (disorted) | Strong |
| Debt/Equity | 0.00 | 0.69 | Strong (Low Leverage) |
| Current Ratio | 9.14 | 10.09 | Strong Liquidity |
| ROA | 2.34% | -1504484.00% (disorted) | Weak |
RIIL.NS outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Reliance Industrial Infrastructure Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-37.96%
Industry Style: Cyclical, Value, Infrastructure
DecliningEPS CAGR
23.34%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
-336.28%
Industry Style: Cyclical, Value, Infrastructure
Declining