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Last Updated on: 24 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Reliance Industrial Infrastructure Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 24, 2024, 9:22 pm

Market Cap 1,557 Cr.
Current Price 1,031
High / Low1,605/992
Stock P/E149
Book Value 284
Dividend Yield0.34 %
ROCE3.86 %
ROE2.48 %
Face Value 10.0
PEG Ratio8.36

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Reliance Industrial Infrastructure Ltd

Competitors of Reliance Industrial Infrastructure Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Fine Line Circuits Ltd 50.3 Cr. 104114/48.2173 17.80.00 %4.49 %1.87 % 10.0
Filtra Consultants & Engineers Ltd 88.3 Cr. 80.5116/32.123.5 21.42.79 %21.1 %15.9 % 10.0
DRA Consultants Ltd 41.8 Cr. 38.269.0/23.415.2 28.40.00 %11.2 %8.09 % 10.0
Zodiac Energy Ltd 752 Cr. 498819/14055.8 53.80.00 %22.4 %26.0 % 10.0
Rites Ltd 13,229 Cr. 275413/23133.2 53.84.18 %25.4 %17.5 % 10.0
Industry Average3,997.17 Cr482.2472.24118.620.74%12.27%9.82%10.00

All Competitor Stocks of Reliance Industrial Infrastructure Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales12.6715.0815.6616.7416.3916.4016.5216.6217.2817.6314.2714.3614.95
Expenses11.1813.7114.8016.0115.0915.0514.9616.9216.4716.8616.5615.6815.79
Operating Profit1.491.370.860.731.301.351.56-0.300.810.77-2.29-1.32-0.84
OPM %11.76%9.08%5.49%4.36%7.93%8.23%9.44%-1.81%4.69%4.37%-16.05%-9.19%-5.62%
Other Income3.873.804.114.424.023.261.804.583.3311.106.366.495.58
Interest0.000.000.000.000.000.000.000.000.000.000.000.000.00
Depreciation3.223.012.532.562.562.491.791.491.551.060.830.640.58
Profit before tax2.142.162.442.592.762.121.572.792.5910.813.244.534.16
Tax %8.41%-10.65%26.64%24.71%27.90%13.68%28.66%32.97%26.64%1.11%33.64%45.47%34.86%
Net Profit1.952.391.791.941.991.831.121.871.9010.682.152.482.71
EPS in Rs1.291.581.191.281.321.210.741.241.267.071.421.641.79

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales61809690909389858054656861
Expenses32415964687472747249616565
Operating Profit29403726221916117543-4
OPM %47%49%38%29%25%20%18%13%9%10%7%4%-6%
Other Income96710111613151616162130
Interest0000000000000
Depreciation61010111214141414131063
Profit before tax323534252120151298101823
Tax %25%31%28%11%25%19%36%35%14%5%24%12%
Net Profit2424242216161088881618
EPS in Rs15.6416.1515.9914.6210.3410.876.455.165.255.105.0110.3211.92
Dividend Payout %22%23%22%24%34%32%54%58%57%59%60%34%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)0.00%0.00%-8.33%-27.27%0.00%-37.50%-20.00%0.00%0.00%0.00%100.00%
Change in YoY Net Profit Growth (%)0.00%0.00%-8.33%-18.94%27.27%-37.50%17.50%20.00%0.00%0.00%100.00%

Reliance Industrial Infrastructure Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2012-2013 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:-5%
5 Years:-7%
3 Years:2%
TTM:-15%
Compounded Profit Growth
10 Years:-7%
5 Years:6%
3 Years:10%
TTM:5%
Stock Price CAGR
10 Years:7%
5 Years:27%
3 Years:14%
1 Year:-5%
Return on Equity
10 Years:3%
5 Years:2%
3 Years:2%
Last Year:2%

Last Updated: Unknown

Balance Sheet

Last Updated: October 15, 2024, 3:15 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital15151515151515151515151515
Reserves217235249285298308323321361383377415414
Borrowings0000000000000
Other Liabilities70635754424439443735456270
Total Liabilities302313321354355367378380413434438492499
Fixed Assets951221111141028978645343372928
CWIP9334564322000
Investments36120160192214231260266315355229279278
Other Assets162674744344136474334172184193
Total Assets302313321354355367378380413434438492499

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +143241162612131-46232
Cash from Investing Activity +-7-27-33-10-19-7-757-1-193
Cash from Financing Activity +-6-7-6-6-6-6-6-6-5-5-5-5
Net Cash Flow0-2101-1-01-20-0-0

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow29.0040.0037.0026.0022.0019.0016.0011.007.005.004.003.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days88696588757662112132912021
Inventory Days
Days Payable
Cash Conversion Cycle88696588757662112132912021
Working Capital Days92512393149445511562714836
ROCE %16%13%8%5%7%5%4%3%2%3%2%4%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters45.43%45.43%45.43%45.43%45.43%45.43%45.43%45.43%45.43%45.43%45.43%45.43%
FIIs0.16%0.32%0.69%0.67%0.71%0.78%0.80%1.17%1.12%0.98%1.56%1.11%
DIIs0.03%0.03%0.03%0.03%0.03%0.03%0.03%0.03%0.03%0.03%0.03%0.03%
Public54.38%54.22%53.85%53.87%53.82%53.76%53.73%53.38%53.41%53.56%52.96%53.42%
No. of Shareholders85,93984,34686,27788,43487,39487,46688,28085,26483,32980,16881,71282,165

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)8.8211.645.536.396.43
Diluted EPS (Rs.)8.8211.645.536.396.43
Cash EPS (Rs.)8.4914.2211.7213.7214.55
Book Value[Excl.RevalReserv]/Share (Rs.)312.15285.54288.03272.82245.22
Book Value[Incl.RevalReserv]/Share (Rs.)312.15285.54288.03272.82245.22
Revenue From Operations / Share (Rs.)38.4745.0643.1735.9752.84
PBDIT / Share (Rs.)12.2210.4113.2813.9715.43
PBIT / Share (Rs.)10.506.516.565.356.13
PBT / Share (Rs.)10.5011.766.565.356.13
Net Profit / Share (Rs.)6.7610.325.005.105.25
NP After MI And SOA / Share (Rs.)8.8211.645.536.396.43
PBDIT Margin (%)31.7723.1030.7638.8329.19
PBIT Margin (%)27.2814.4515.2014.8711.60
PBT Margin (%)27.2826.0915.2014.8711.60
Net Profit Margin (%)17.5822.8911.5914.179.93
NP After MI And SOA Margin (%)22.9225.8112.8117.7612.16
Return on Networth / Equity (%)2.824.071.922.342.62
Return on Capital Employeed (%)3.232.212.191.882.40
Return On Assets (%)2.493.681.772.152.34
Asset Turnover Ratio (%)0.110.140.140.130.20
Current Ratio (X)5.296.417.814.142.60
Quick Ratio (X)5.286.407.694.032.52
Dividend Payout Ratio (NP) (%)39.6825.7854.2346.9446.66
Dividend Payout Ratio (CP) (%)33.1819.3124.4919.9819.07
Earning Retention Ratio (%)60.3274.2245.7753.0653.34
Cash Earning Retention Ratio (%)66.8280.6975.5180.0280.93
Enterprise Value (Cr.)1925.411179.991173.61549.37311.63
EV / Net Operating Revenue (X)33.1517.3418.0010.113.91
EV / EBITDA (X)104.3175.0558.5226.0513.38
MarketCap / Net Operating Revenue (X)33.1717.3618.0310.143.94
Retention Ratios (%)60.3174.2145.7653.0553.33
Price / BV (X)4.092.742.701.340.84
Price / Net Operating Revenue (X)33.1717.3618.0310.143.94
EarningsYield0.010.010.010.010.03

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Reliance Industrial Infrastructure Ltd as of November 24, 2024 is: 1,053.00

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 24, 2024, Reliance Industrial Infrastructure Ltd is Undervalued by 2.13% compared to the current share price 1,031.00

Intrinsic Value of Reliance Industrial Infrastructure Ltd as of November 24, 2024 is: 1,240.66

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 24, 2024, Reliance Industrial Infrastructure Ltd is Undervalued by 20.34% compared to the current share price 1,031.00

Last 5 Year EPS CAGR: 17.82%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (322.00 cr) compared to borrowings (0.00 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (77.85 cr) and profit (20.15 cr) over the years.
  1. The stock has a low average ROCE of 6.00%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 165.92, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 74.92, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Reliance Industrial Infrastructure Ltd:
    1. Net Profit Margin: 17.58%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 3.23% (Industry Average ROCE: 12.27%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 2.82% (Industry Average ROE: 9.82%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 0
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 5.28
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 149 (Industry average Stock P/E: 72.24)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Reliance Industrial InfraStructure Ltd. is a Public Limited Listed company incorporated on 29/09/1988 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L60300MH1988PLC049019 and registration number is 049019. Currently Company is involved in the business activities of T ransport via pipeline. Company’s Total Operating Revenue is Rs. 65.19 Cr. and Equity Capital is Rs. 15.10 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Project Consultancy/TurnkeyNKM International House, 5th Floor, Mumbai Maharashtra 400020investor_relations@riil.in
http://www.riil.in
Management
NamePosition Held
Mr. Mahesh K KamdarNon Executive Chairman
Mr. Dilip V DheraiExecutive Director
Mr. Chandra Raj MehtaIndependent Director
Mr. Sandeep H JunnarkarIndependent Director
Mr. A SiddharthIndependent Director
Mrs. Riddhi BhimaniIndependent Director
Mr. Sanjiv SinghNon Executive Director
Mr. Rahul DuttIndependent Director

FAQ

What is the latest intrinsic value of Reliance Industrial Infrastructure Ltd?

The latest intrinsic value of Reliance Industrial Infrastructure Ltd as on 24 November 2024 is ₹1053.00, which is 2.13% higher than the current market price of ₹1,031.00.

What is the Market Cap of Reliance Industrial Infrastructure Ltd?

The Market Cap of Reliance Industrial Infrastructure Ltd is 1,557 Cr..

What is the current Stock Price of Reliance Industrial Infrastructure Ltd as on 24 November 2024?

The current stock price of Reliance Industrial Infrastructure Ltd as on 24 November 2024 is 1,031.

What is the High / Low of Reliance Industrial Infrastructure Ltd stocks in FY 2024?

In FY 2024, the High / Low of Reliance Industrial Infrastructure Ltd stocks is 1,605/992.

What is the Stock P/E of Reliance Industrial Infrastructure Ltd?

The Stock P/E of Reliance Industrial Infrastructure Ltd is 149.

What is the Book Value of Reliance Industrial Infrastructure Ltd?

The Book Value of Reliance Industrial Infrastructure Ltd is 284.

What is the Dividend Yield of Reliance Industrial Infrastructure Ltd?

The Dividend Yield of Reliance Industrial Infrastructure Ltd is 0.34 %.

What is the ROCE of Reliance Industrial Infrastructure Ltd?

The ROCE of Reliance Industrial Infrastructure Ltd is 3.86 %.

What is the ROE of Reliance Industrial Infrastructure Ltd?

The ROE of Reliance Industrial Infrastructure Ltd is 2.48 %.

What is the Face Value of Reliance Industrial Infrastructure Ltd?

The Face Value of Reliance Industrial Infrastructure Ltd is 10.0.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Reliance Industrial Infrastructure Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE