RattanIndia Power Limited
RattanIndia Power Limited Fundamental Analysis
RattanIndia Power Limited (RTNPOWER.NS) shows weak financial fundamentals with a PE ratio of 97.01, profit margin of 1.75%, and ROE of 1.14%. The company generates $30.0B in annual revenue with weak year-over-year growth of -2.38%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 22.9/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze RTNPOWER.NS's fundamental strength across five key dimensions:
Efficiency Score
WeakRTNPOWER.NS struggles to generate sufficient returns from assets.
Valuation Score
ModerateRTNPOWER.NS shows balanced valuation metrics.
Growth Score
WeakRTNPOWER.NS faces weak or negative growth trends.
Financial Health Score
ExcellentRTNPOWER.NS maintains a strong and stable balance sheet.
Profitability Score
ModerateRTNPOWER.NS maintains healthy but balanced margins.
Key Financial Metrics
Is RTNPOWER.NS Expensive or Cheap?
P/E Ratio
RTNPOWER.NS trades at 97.01 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, RTNPOWER.NS's PEG of -1.28 indicates potential undervaluation.
Price to Book
The market values RattanIndia Power Limited at 1.10 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 1.84 times EBITDA. This is generally considered low.
How Well Does RTNPOWER.NS Make Money?
Net Profit Margin
For every $100 in sales, RattanIndia Power Limited keeps $1.75 as profit after all expenses.
Operating Margin
Core operations generate 5.32 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $1.14 in profit for every $100 of shareholder equity.
ROA
RattanIndia Power Limited generates $0.55 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
RattanIndia Power Limited produces operating cash flow of $3.75B, showing steady but balanced cash generation.
Free Cash Flow
RattanIndia Power Limited generates strong free cash flow of $3.02B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.56 in free cash annually.
FCF Yield
RTNPOWER.NS converts 5.89% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
97.01
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.28
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.10
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.71
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.80
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.24
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.01
vs 25 benchmark
ROA
Return on assets percentage
0.005
vs 25 benchmark
ROCE
Return on capital employed
0.02
vs 25 benchmark
How RTNPOWER.NS Stacks Against Its Sector Peers
| Metric | RTNPOWER.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 97.01 | 19.44 | Worse (Expensive) |
| ROE | 1.14% | 914.00% | Weak |
| Net Margin | 1.75% | 695.00% | Weak |
| Debt/Equity | 0.80 | 20.22 | Strong (Low Leverage) |
| Current Ratio | 2.24 | 1.37 | Strong Liquidity |
| ROA | 0.55% | -4803.00% (disorted) | Weak |
RTNPOWER.NS outperforms its industry in 2 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews RattanIndia Power Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
68.60%
Industry Style: Defensive, Dividend, Income
High GrowthEPS CAGR
22.27%
Industry Style: Defensive, Dividend, Income
High GrowthFCF CAGR
-38.83%
Industry Style: Defensive, Dividend, Income
Declining