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Last Updated on: 27 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Reliance Communications Ltd

About the Company - Reliance Communications Ltd

Reliance Communications Ltd. is a Public Limited Listed company incorporated on 15/07/2004 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L45309MH2004PLC147531 and registration number is 147531. Currently Company is involved in the business activities of Wired telecommunications activities. Company’s Total Operating Revenue is Rs. 345.00 Cr. and Equity Capital is Rs. 1383.00 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Telecom ServicesH Block, 1st Floor, Dhirubhai Ambani Knowledge City, New Mumbai Maharashtra 400710rcom.investors@relianceada.com
http://www.rcom.co.in
Management
NamePosition Held
Mr. Anil Dhirubhai AmbaniChairman
Mr. Viswanath Devaraja RaoExecutive Director & CFO
Mrs. Chhaya ViraniDirector
Mr. Suresh RangacharDirector
Mr. Punit GargDirector
Mrs. Manjari KackerDirector
Mrs. Ryna KaraniDirector

Reliance Communications Ltd. Share Price Update

Share PriceValue
Today₹2.22
Previous Day₹2.33

Basic Stock Data of Reliance Communications Ltd

Market Cap 553 Cr.
Current Price 2.00
High / Low2.49/1.00
Stock P/E
Book Value 282
Dividend Yield0.00 %
ROCE%
ROE%
Face Value 5.00

Data Source: screener.in

Competitors of Reliance Communications Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Tejas Networks Ltd 12,595 Cr. 738940/545 1770.00 %1.20 %1.62 % 10.0
OnMobile Global Ltd 919 Cr. 86.5128/55.648.4 61.90.00 %1.94 %1.20 % 10.0
Uniinfo Telecom Services Ltd 50.0 Cr. 46.757.0/15.119.6 31.00.00 %3.09 %1.91 % 10.0
Vodafone Idea Ltd 78,180 Cr. 16.118.4/5.70 18.70.00 %3.82 %% 10.0
Industry Average22,936.00 Cr221.8317.0072.150.00%2.51%1.18%10.00

Tejas Networks Ltd Quarterly Results

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales19717417714913614612512512312011110097
Expenses1,5711,5691,6691,7161421421551491521178091117
Operating Profit-1,374-1,395-1,492-1,567-64-30-24-293319-20
OPM %-697%-802%-843%-1,052%-4%3%-24%-19%-24%2%28%9%-21%
Other Income20145-1,570-1,647-1,629-1,690-1,764-9,258-1,873-1,930-989
Interest11131212121211121212111211
Depreciation39403937393738373433323234
Profit before tax-1,422-1,448-1,529-1,611-1,627-1,692-1,708-1,763-1,839-9,300-1,885-1,965-1,054
Tax %-0%-0%0%-0%-0%-0%0%0%0%0%0%0%-1%
Net Profit-1,426-1,452-1,526-1,612-1,629-1,696-1,700-1,763-1,839-9,300-1,882-1,965-1,060
EPS in Rs-5.13-5.23-5.49-5.81-5.87-6.11-6.15-6.38-6.65-32.59-6.81-7.11-3.83

Reliance Communications Ltd Quarterly Chart

Reliance Communications Ltd Profit & Loss

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales19,67720,56121,23824,78725,5946,5544,5934,0151,685760556479402
Expenses11,14214,58914,57517,59318,3426,93727,6738,77133,7716,378618498380
Operating Profit8,5355,9726,6637,1947,252-383-23,080-4,756-32,086-5,618-62-1922
OPM %43%29%31%29%28%-6%-502%-118%-1,904%-739%-11%-4%5%
Other Income-2,0451,1871,0073243888696975-10,16119-6,378-14,585-6,809
Interest1,6302,4993,0192,7552,9242551861926248474748
Depreciation3,9783,8454,5353,8174,484821721820354155151136129
Profit before tax882815116946232-1,373-23,891-4,793-42,663-5,802-6,638-14,787-6,964
Tax %-12%9%-880%34%-184%7%-0%-51%-0%-0%0%0%
Net Profit9897451,139623660-1,283-23,907-7,218-42,677-5,812-6,637-14,784-6,967
EPS in Rs4.503.265.072.872.57-5.64-86.20-26.06-154.30-20.94-23.94-52.43-25.20
Dividend Payout %6%8%0%0%0%0%0%0%0%0%0%0%

Reliance Communications Ltd Profit & Loss Yearly Chart

Reliance Communications Ltd Growth

Compounded Sales Growth
10 Years:-31%
5 Years:-36%
3 Years:-34%
TTM:-18%
Compounded Profit Growth
10 Years:%
5 Years:7%
3 Years:16%
TTM:61%
Stock Price CAGR
10 Years:-33%
5 Years:-20%
3 Years:7%
1 Year:24%
Return on Equity
10 Years:%
5 Years:%
3 Years:%
Last Year:%

Tejas Networks Ltd Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital1,0321,0321,0321,2441,2441,2441,3831,3831,3831,3831,3831,3831,383
Reserves35,26432,81831,76436,69230,33927,3251,400-5,563-49,539-55,289-61,956-76,274-79,325
Borrowings38,30341,54741,97839,82846,91249,06147,23448,58345,58445,57745,57247,26147,237
Other Liabilities17,66614,78514,47713,52023,03118,43122,04423,12650,56456,14562,53864,39367,286
Total Liabilities92,26590,18289,25191,284101,52696,06172,06167,52947,99247,81647,53736,76336,581
Fixed Assets71,46170,51368,55365,03769,71270,84320,8399,7073,7133,5613,4533,0872,957
CWIP5,0263,8643,1902,6889,8402,8902651951931961586964
Investments6526627231,39530323212,0335557505635
Other Assets15,12615,14316,78522,16421,94422,29650,92545,59444,03144,00243,87633,55133,525
Total Assets92,26590,18289,25191,284101,52696,06172,06167,52947,99247,81647,53736,76336,581

Reliance Communications Ltd Reserves and Borrowings Chart

Reliance Communications Ltd Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 5,7523,8256,8393,15814,106-38896437419328119-64
Cash from Investing Activity -4,571-2,068-2,099-3,126-14,950812-268719-355-6-298-175
Cash from Financing Activity -5,497-1,576-4,967820436-173-904-868-54-55-51-22
Net Cash Flow-4,316181-227852-408251-208225-390267-230-261

Tejas Networks Ltd Financial Efficiency Indicators

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days6669677243181170122106215194219
Inventory Days
Days Payable
Cash Conversion Cycle6669677243181170122106215194219
Working Capital Days-100-65-75-47-186-8271,230670-4,740-6,131-12,859-24,358
ROCE %3%4%4%5%4%-1%-37%-7%-153%

Reliance Communications Ltd Financial Efficiency Indicators Chart

Reliance Communications Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters5.18%5.18%5.18%5.18%5.18%5.18%5.18%5.18%5.18%1.85%1.85%1.85%
FIIs0.17%0.21%0.17%0.17%0.14%0.15%0.15%0.15%0.14%0.14%0.11%0.11%
DIIs4.69%4.69%4.69%4.65%4.66%4.65%4.66%4.66%4.40%4.40%4.40%4.40%
Government0.03%0.03%0.03%0.03%0.03%0.03%0.03%0.03%0.03%0.03%0.03%0.03%
Public89.17%89.13%89.17%89.21%89.23%89.23%89.21%89.22%89.50%92.81%92.83%92.84%
Others0.77%0.77%0.77%0.77%0.77%0.77%0.77%0.77%0.77%0.77%0.77%0.77%
No. of Shareholders13,31,37714,09,92414,64,17715,38,23116,03,47416,18,75416,21,72116,11,15916,07,64815,99,74615,93,21115,86,381

Reliance Communications Ltd Shareholding Pattern Chart

No. of Reliance Communications Ltd Shareholders

This stock is not held by any mutual fund

Reliance Communications Ltd ROCE Trend

Reliance Communications Ltd EPS Trend

Reliance Communications Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue5.005.005.005.005.00
Basic EPS (Rs.)-52.83-24.12-21.10-155.49-26.26
Diluted EPS (Rs.)-52.83-24.12-21.10-155.49-26.26
Cash EPS (Rs.)-52.96-23.62-20.45-153.03-23.14
Book Value[Excl.RevalReserv]/Share (Rs.)-270.77-217.99-193.82-172.96-13.95
Book Value[Incl.RevalReserv]/Share (Rs.)-270.77-217.99-193.82-172.96-13.95
Revenue From Operations / Share (Rs.)1.732.012.756.0914.52
PBDIT / Share (Rs.)0.02-0.120.01-0.602.02
PBIT / Share (Rs.)-0.46-0.66-0.54-1.88-0.93
PBT / Share (Rs.)-1.02-0.83-0.72-39.035.63
Net Profit / Share (Rs.)-53.46-24.16-21.01-154.31-26.10
NP After MI And SOA / Share (Rs.)-52.42-24.10-20.94-154.27-26.05
PBDIT Margin (%)1.46-6.110.26-9.9113.94
PBIT Margin (%)-26.93-33.27-20.00-30.91-6.47
PBT Margin (%)-58.87-41.72-26.31-640.7738.75
Net Profit Margin (%)-3086.84-1202.15-764.60-2532.99-179.82
NP After MI And SOA Margin (%)-3026.93-1199.10-761.97-2532.40-179.47
Return on Capital Employeed (%)0.170.310.291.13-28.88
Return On Assets (%)-39.43-14.01-12.10-88.89-10.66
Long Term Debt / Equity (X)-0.01-0.01-0.01-0.010.00
Total Debt / Equity (X)-0.63-0.75-0.57-0.63-7.24
Asset Turnover Ratio (%)0.010.010.010.010.02
Current Ratio (X)0.290.390.420.450.65
Quick Ratio (X)0.290.390.420.450.65
Interest Coverage Ratio (X)0.14-0.720.04-2.692.92
Interest Coverage Ratio (Post Tax) (X)-2.68-3.91-3.38-8.63-13.98
Enterprise Value (Cr.)47222.0545722.2930661.9230680.5630796.12
EV / Net Operating Revenue (X)98.5882.2340.3418.217.67
EV / EBITDA (X)6746.01-1344.7715330.96-183.7254.99
MarketCap / Net Operating Revenue (X)0.731.330.600.100.28
Price / BV (X)0.00-0.01-0.010.00-0.27
Price / Net Operating Revenue (X)0.731.330.600.100.28
EarningsYield-40.95-8.99-12.54-233.74-6.29

Reliance Communications Ltd Profitability Ratios (%)

Reliance Communications Ltd Liquidity Ratios

Reliance Communications Ltd Liquidity Ratios (%)

Reliance Communications Ltd Interest Coverage Ratios (%)

Reliance Communications Ltd Valuation Ratios

Fair Value of Reliance Communications Ltd Stock

Fair Value: ₹647.19

The stock is undervalued by 32,259.50% compared to the current price ₹2

*Investments are subject to market risks

Strength and Weakness of Reliance Communications Ltd Stock

StrengthWeakness
  1. The stock has a low average Working Capital Days of -56.25, which is a positive sign.
  2. The company has shown consistent growth in sales (178.54 cr) and profit (222.31 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of -0.89 and average Dividend Yield of -23.52%.
  2. The stock has a low average ROCE of -14.83%, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 127.00, which may not be favorable.
  4. The company has higher borrowings (44,975.15) compared to reserves (-10,180.31), which may suggest financial risk.

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 Communications 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