Reliance Communications (India) Buy Hold or Sell Recommendation
| RCOM Stock | 1.57 0.00 0.00% |
Assuming the 90 days trading horizon and your above-average risk tolerance, our recommendation regarding Reliance Communications Limited is 'Strong Sell'. A buy or sell recommendation is an automated directive regarding whether to purchase or sell Reliance Communications Limited given historical horizon and risk tolerance. When we issue a 'buy' or 'sell' recommendation for Reliance Communications Limited, the advice is generated through an automated system that utilizes algorithms and statistical models.
Check out Reliance Communications Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. Note, we conduct extensive research on individual companies such as Reliance and provide practical buy, sell, or hold advice based on investors' constraints. Reliance Communications Limited. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors.
Reliance |
Execute Reliance Communications Buy or Sell Advice
The Reliance recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Reliance Communications Limited. Macroaxis does not own or have any residual interests in Reliance Communications Limited or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Reliance Communications' advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Strong Sell
Market Performance | Very Weak | Details | |
Volatility | Very risky | Details | |
Hype Condition | Under hyped | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Very High | Details | |
Economic Sensitivity | Moves indifferently to market moves | Details | |
Analyst Consensus | Not Available | Details | |
Reporting Quality (M-Score) | Inapplicable | Details |
Reliance Communications Trading Alerts and Improvement Suggestions
| Reliance Communications generated a negative expected return over the last 90 days | |
| Reliance Communications may become a speculative penny stock | |
| Reliance Communications has a very high chance of going through financial distress in the upcoming years | |
| The company reported the revenue of 3.83 B. Net Loss for the year was (71.97 B) with profit before overhead, payroll, taxes, and interest of 1.62 B. | |
| Reliance Communications Limited has accumulated about 1.34 B in cash with (390 M) of positive cash flow from operations. |
Reliance Communications Returns Distribution Density
The distribution of Reliance Communications' historical returns is an attempt to chart the uncertainty of Reliance Communications' future price movements. The chart of the probability distribution of Reliance Communications daily returns describes the distribution of returns around its average expected value. We use Reliance Communications Limited price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Reliance Communications returns is essential to provide solid investment advice for Reliance Communications.
| Mean Return | -0.55 | Value At Risk | -5.33 | Potential Upside | 4.71 | Standard Deviation | 2.68 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Reliance Communications historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
Reliance Communications Cash Flow Accounts
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 (projected) | ||
| Change In Cash | 2.7B | (2.3B) | (2.6B) | (130M) | (149.5M) | (157.0M) | |
| Free Cash Flow | 3.2B | 840M | (640M) | (390M) | (448.5M) | (470.9M) | |
| Depreciation | 1.6B | 1.5B | 1.4B | 1.3B | 1.1B | 1.1B | |
| Other Non Cash Items | 9.2B | 8.4B | 84.8B | 9.6B | 11.0B | 10.5B | |
| Capital Expenditures | 90M | 350M | 0.0 | 130M | 117M | 111.2M | |
| Net Income | (58.5B) | (67.7B) | (147.9B) | (72.0B) | (64.8B) | (68.0B) | |
| End Period Cash Flow | 7.1B | 4.8B | 2.2B | 2.1B | 1.8B | 1.8B | |
| Net Borrowings | (20M) | (70M) | (50M) | (90M) | (103.5M) | (98.3M) | |
| Change To Netincome | 111.2B | 8.6B | 6.9B | 81.9B | 94.2B | 69.5B |
Reliance Communications Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Reliance Communications or Diversified Telecommunication Services sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Reliance Communications' price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Reliance stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over Dow Jones | -0.57 | |
β | Beta against Dow Jones | -0.09 | |
σ | Overall volatility | 2.72 | |
Ir | Information ratio | -0.17 |
Reliance Communications Volatility Alert
Reliance Communications Limited exhibits very low volatility with skewness of -0.46 and kurtosis of 0.81. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Reliance Communications' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Reliance Communications' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.Reliance Communications Fundamentals Vs Peers
Comparing Reliance Communications' fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Reliance Communications' direct or indirect competition across all of the common fundamentals between Reliance Communications and the related equities. This way, we can detect undervalued stocks with similar characteristics as Reliance Communications or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Reliance Communications' fundamental indicators could also be used in its relative valuation, which is a method of valuing Reliance Communications by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare Reliance Communications to competition |
| Fundamentals | Reliance Communications | Peer Average |
| Return On Asset | -0.0024 | -0.14 |
| Operating Margin | (0.68) % | (5.51) % |
| Current Valuation | 472.12 B | 16.62 B |
| Shares Outstanding | 2.74 B | 571.82 M |
| Shares Owned By Insiders | 5.43 % | 10.09 % |
| Shares Owned By Institutions | 4.15 % | 39.21 % |
| Price To Sales | 1.23 X | 11.42 X |
| Revenue | 3.83 B | 9.43 B |
| Gross Profit | 1.62 B | 27.38 B |
| EBITDA | 870 M | 3.9 B |
| Net Income | (71.97 B) | 570.98 M |
| Cash And Equivalents | 1.34 B | 2.7 B |
| Total Debt | 472.31 B | 5.32 B |
| Book Value Per Share | (315.68) X | 1.93 K |
| Cash Flow From Operations | (390 M) | 971.22 M |
| Earnings Per Share | (0.54) X | 3.12 X |
| Target Price | 17.0 | |
| Beta | 1.98 | -0.15 |
| Market Capitalization | 4.47 B | 19.03 B |
| Total Asset | 365.54 B | 29.47 B |
| Retained Earnings | (993.4 B) | 9.33 B |
| Working Capital | (855.28 B) | 1.48 B |
| Net Asset | 365.54 B |
Reliance Communications Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Reliance . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
About Reliance Communications Buy or Sell Advice
When is the right time to buy or sell Reliance Communications Limited? Buying financial instruments such as Reliance Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
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Additional Tools for Reliance Stock Analysis
When running Reliance Communications' price analysis, check to measure Reliance Communications' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Reliance Communications is operating at the current time. Most of Reliance Communications' value examination focuses on studying past and present price action to predict the probability of Reliance Communications' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Reliance Communications' price. Additionally, you may evaluate how the addition of Reliance Communications to your portfolios can decrease your overall portfolio volatility.