Reliance Power (India) Buy Hold or Sell Recommendation
| RPOWER Stock | 45.80 0.49 1.06% |
Assuming the 90 days trading horizon and your highly speculative risk level, our recommendation regarding Reliance Power Limited is 'Strong Sell'. Macroaxis provides Reliance Power buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding RPOWER positions.
Check out Reliance Power 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. In addition, we conduct extensive research on individual companies such as Reliance and provide practical buy, sell, or hold advice based on investors' investing horizon and their risk tolerance towards Reliance Power 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 income.
Reliance |
Execute Reliance Power 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 Power Limited. Macroaxis does not own or have any residual interests in Reliance Power Limited or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Reliance Power's advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Strong Sell
Market Performance | Very Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Stale | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Quite High | Details | |
Economic Sensitivity | Slowly supersedes the market | Details | |
Analyst Consensus | Not Available | Details | |
Reporting Quality (M-Score) | Inapplicable | Details |
Reliance Power Trading Alerts and Improvement Suggestions
| Reliance Power generated a negative expected return over the last 90 days | |
| Reliance Power has high historical volatility and very poor performance | |
| Reliance Power has high likelihood to experience some financial distress in the next 2 years | |
| The company reported the revenue of 78.93 B. Net Loss for the year was (20.28 B) with profit before overhead, payroll, taxes, and interest of 48.13 B. | |
| About 29.0% of the company outstanding shares are owned by corporate insiders | |
| Latest headline from news.google.com: Anil Ambani scores another win as Reliance Power gets contract with..., shares jump... - India.com |
Reliance Power Returns Distribution Density
The distribution of Reliance Power's historical returns is an attempt to chart the uncertainty of Reliance Power's future price movements. The chart of the probability distribution of Reliance Power daily returns describes the distribution of returns around its average expected value. We use Reliance Power Limited price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Reliance Power returns is essential to provide solid investment advice for Reliance Power.
| Mean Return | -0.03 | Value At Risk | -5.01 | Potential Upside | 4.99 | Standard Deviation | 3.67 |
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 Power 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 Power Cash Flow Accounts
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 (projected) | ||
| Change In Cash | 192.6M | 206.8M | 464.2M | 2.5B | 2.2B | 2.3B | |
| Free Cash Flow | 40.1B | 34.2B | 36.4B | 31.7B | 36.5B | 38.3B | |
| Other Non Cash Items | 21.9B | 27.2B | 21.6B | 38.9B | 44.8B | 47.0B | |
| Capital Expenditures | 1.3B | 2.0B | 3.8B | 17.7B | 15.9B | 21.9B | |
| Net Income | 4.1B | (5.2B) | (3.0B) | (20.3B) | (18.3B) | (17.3B) | |
| End Period Cash Flow | 1.4B | 1.6B | 2.4B | 4.9B | 4.4B | 5.3B | |
| Depreciation | 12.9B | 12.8B | 12.4B | 12.6B | 14.5B | 7.8B | |
| Change To Inventory | 1.4B | 460.8M | (1.0B) | (383.2M) | (440.7M) | (462.7M) | |
| Investments | (108.3M) | (3.1B) | (3.5B) | (1.9B) | (1.7B) | (1.6B) | |
| Net Borrowings | (32.2B) | (21.1B) | (21.8B) | (17.7B) | (16.0B) | (15.2B) | |
| Change To Netincome | 63.5B | 61.6B | 15.0B | 28.0B | 32.2B | 31.8B |
Reliance Power 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 Power or Independent Power and Renewable Electricity Producers 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 Power's 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 | -0.03 | |
β | Beta against Dow Jones | -0.15 | |
σ | Overall volatility | 3.53 | |
Ir | Information ratio | -0.01 |
Reliance Power Volatility Alert
Reliance Power Limited exhibits very low volatility with skewness of 0.22 and kurtosis of -1.02. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Reliance Power's 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 Power's 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 Power Fundamentals Vs Peers
Comparing Reliance Power's 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 Power's direct or indirect competition across all of the common fundamentals between Reliance Power and the related equities. This way, we can detect undervalued stocks with similar characteristics as Reliance Power or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Reliance Power's fundamental indicators could also be used in its relative valuation, which is a method of valuing Reliance Power by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare Reliance Power to competition |
| Fundamentals | Reliance Power | Peer Average |
| Return On Equity | -0.18 | -0.31 |
| Return On Asset | 0.0015 | -0.14 |
| Profit Margin | (0.23) % | (1.27) % |
| Operating Margin | 0.20 % | (5.51) % |
| Current Valuation | 325.46 B | 16.62 B |
| Shares Outstanding | 4.24 B | 571.82 M |
| Shares Owned By Insiders | 28.85 % | 10.09 % |
| Shares Owned By Institutions | 10.15 % | 39.21 % |
| Price To Book | 1.29 X | 9.51 X |
| Price To Sales | 2.43 X | 11.42 X |
| Revenue | 78.93 B | 9.43 B |
| Gross Profit | 48.13 B | 27.38 B |
| EBITDA | 11.21 B | 3.9 B |
| Net Income | (20.28 B) | 570.98 M |
| Cash And Equivalents | 493.2 M | 2.7 B |
| Total Debt | 187.66 B | 5.32 B |
| Book Value Per Share | 28.91 X | 1.93 K |
| Cash Flow From Operations | 31.74 B | 971.22 M |
| Earnings Per Share | 2.50 X | 3.12 X |
| Target Price | 45.14 | |
| Number Of Employees | 1.28 K | 18.84 K |
| Beta | 1.76 | -0.15 |
| Market Capitalization | 193.97 B | 19.03 B |
| Total Asset | 437.6 B | 29.47 B |
| Retained Earnings | (23.34 B) | 9.33 B |
| Working Capital | (131.47 B) | 1.48 B |
| Net Asset | 437.6 B |
Reliance Power 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 Power Buy or Sell Advice
When is the right time to buy or sell Reliance Power 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.
Please read more on our stock advisor page.
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Other Information on Investing in Reliance Stock
Reliance Power financial ratios help investors to determine whether Reliance Stock is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in Reliance with respect to the benefits of owning Reliance Power security.