Should I Invest in RattanIndia Power Limited: Based on market share and operation size, RattanIndia Power Limited, which operates in the power generation industry, is quite strategic for the Indian market. Operating from a diversified portfolio that ranges from thermal generation to renewable energy RattanIndia Power Limited is established as a leading power generation company.
Therefore, whether to invest in this company or not mostly depends on the further examination of the company’s operations, financial stability, opportunities for growth, and the general economic conditions in the country. It is with this background that this article will explore such areas to assist in arriving at an investment decision.
Contents
- 1 RattanIndia Power Limited: An Overview
- 1.1 Rattan Power Share Price Today
- 1.2 RattanIndia Power: Current Financial Position
- 1.3 RattanIndia Power Stock Price Prediction
- 1.4 Why Choose RattanIndia Power Limited for Investment?
- 1.5 Financial Performance Highlights and Challenges: RattanIndia Power Limited
- 1.6 Promoter Pledging Percentage of RattanIndia Power Limited: A Brief
- 1.7 Developments in the Power Sector by RattanIndia Power
- 1.8 Analysis of Its Financial Performance
- 2 Should I Invest in Rattanindia Power?
- 3
RattanIndia Power Limited: An Overview
The company is fully equipped with sound infrastructure and planned for the future environmental goals so it can easily take advantage of the ever increasing energy demands of India. They have big thermal power plants of 2,700 MW with separate capacities of 1,350 MW in Amravati and Nashik in Maharashtra.
The existing capacities of the plants are supported by the investments of Rs. 18,615 crores (about US $2. 5 billion) and the area of coverage of the plants amounts to 2,400 acres. Renowned for its meticulous execution using state-of-the-art equipment and technology, the company has established itself as a leader in creating world-class power generation assets, poised to meet India’s burgeoning energy needs effectively.
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The day range of a stock is an essential aspect when investing or trading because it tells the price movements of the particular stock within a single day. Here’s an expanded explanation of the significance and implications of a day range, using the RattanIndia stock price example (17. 00-17. 58):
Today’s Range:
- 17.00 (L): Stock price that fell at the lowest point in a particular trading day.
- 17.58 (H): The maximum value of the stock throughout the day’s trading session.
Week Range: 4.30 – 21.10
- 4.30 (L): The lowest selling price at which the stock has been sold in the past one year or 52 weeks.
- 21.10 (H): The market value of the equity at the maximum price it has sold for in the last one year.
RattanIndia Power: Current Financial Position
Price Performance
| Time Period | Price Change (%) |
| 1 Week | -1.99% |
| 1 Month | -14.18% |
| 3 Months | +81.58% |
| Year to Date (YTD) | +91.67% |
| 1 Year | +225.47% |
| 3 Years | +94.92% |
Key Financial Ratios and Market Metrics
| Market Cap | INR 9,285 cr |
| P/E Ratio (TTM) | 1.04 |
| P/B Ratio | 2.13 |
| Industry P/E | 25.03 |
| Debt to Equity | 0.82 |
| ROE | -39.83% |
| Book Value | 8.13 |
| Face Value | 10 |
Shareholding Distribution
| Retail | 47.24% |
| Promoters | 44.06% |
| Other Domestic Institutions | 6.59% |
| Foreign Institutions | 2.03% |
| Mutual Funds | 0.08% |
RattanIndia Power Stock Price Prediction
Here is the detailed elaboration of the forecasted stock price range of RattanIndia Power Company for different time horizons in light of various analyses. These forecasts indicate that they have high expectations for the number of times RattanIndia Power shares as well as expectations for the growth of the stock price due to initiatives in renewable energy, debt management, and the market environment.
Although such projections can be made, one must remember that they can still alter with the change in trends in the economy, sector, or performance of the company. Anyone interested in investing should then ensure they find the right information or consult someone who specializes in the investing business with a view of making the right investments depending on their investment plans and abilities to take risks.
Stock Price Prediction 2024
- Predicted Range: ₹6.90 to ₹7.20
Stock Price Prediction 2025
- Predicted Range: ₹9.40 to ₹9.80
- Alternative Prediction: ₹11 to ₹12
Stock Price Prediction 2028
- Predicted Range: ₹17 to ₹18
- Alternative Prediction: Up to ₹22
Stock Price Prediction 2030
- Predicted Range ₹22 to ₹24
- Alternative Prediction: ₹30 to ₹34
Why Choose RattanIndia Power Limited for Investment?
- Significant Investment and Scale: RattanIndia Power has invested INR 18,615 crores (which is approx $2.5 billion) in building up of its two 2,700 MW thermal power plants. These plants are located in Maharashtra, which highlights substantial financial dedication and operational footprint.
- Large-scale Infrastructure: The infrastructure spans approximately 2,400 acres, which supports efficient operations and growth possibilities for RattanIndia Power’s power generation activities in Maharashtra.
- High Capacity Result: With a combined capacity to produce 23.6 billion units of electricity annually, these power plants significantly contribute to meeting India’s energy demands.
- Integrated Logistics: The construction of 35 kilometres of railway lines enhances logistical efficiency, facilitating smooth transportation of resources and materials within and around the power plants.
- Advanced Infrastructure: The installation of 63 km of pipelines provides a reliable supply of water, essential for cooling and processing systems in power plants.
- Commitment to Efficiency and Sustainable Growth: Through strategic investments in infrastructure and technology, Rattan India Power builds on its commitment to efficiency and sustainable energy practices and sustainability in the electricity industry is emphasised.
Financial Performance Highlights and Challenges: RattanIndia Power Limited
Achievements
- Strong Revenue Growth: RattanIndia Power has achieved an impressive revenue growth of 22.13% in the last 3 years, reflecting its improved market positioning and operating strategies in the power industry.
- Strong Operating Margin: Maintaining an operating margin of 28.16% over the past 5 years highlights the company’s profit management and operational efficiency, contributing to consistent profitability regardless as a market variable.
- Improved Operating Margins: 4.13 On average, Rattan India Power demonstrates a strong ability to increase operating margins through its existing infrastructure and operating scale, and with fixed costs, use it properly.
Limitations
- Declining Profit Growth: Despite strong earnings, the company has been facing profitability challenges, as evidenced by a negative profit growth of -44.04% over the last 3 years, indicating potential efficiency or cost pressures affecting the originator.
- Low Return On Equity: A ROE of 4.98% highlights the company’s struggle to maximise returns on shareholders’ equity, indicating potentially better performance in terms of capital deployment or profitability metrics compared to industry peers
- Increased Credit Days: 282.46 Average credit days reflect extended credit terms or difficulties with cash collection management, which can affect cash flow and cash flow use in the workplace
- High Promoter Commitment: With a promoter commitment of 88.65%, the company faces a higher liquidity risk, as higher guaranteed dividends may affect ownership control and liquidity in adverse market conditions or under economic pressure.
Promoter Pledging Percentage of RattanIndia Power Limited: A Brief
- March 2024: Promoter holding is 44.06%, with 88.65% of shares pledged, reflecting the substantial acquisition of promoter shares.
- December 2023: Promoter retention remains flat at 44.06%, with 88.65% of shares pledged, reflecting an ongoing financial commitment to using shares as security
- September 2023: Promoter retention and pledge levels show stability compared to the previous period, continuing to move on budget.
- June 2023: The promoter’s shareholding is 44.06%, with no shares pledged, indicating a temporary absence of pledged shares during this period
- March 2023: Promoter holding stands at 44.06%, with 88.95% of shares pledged, reflecting little change in pledge percentage in recent quarters.
Developments in the Power Sector by RattanIndia Power
Rattan India Power is engaged in fundamental reforms in distribution business in line with the policies of the Government of India:
- Standard Bidding Framework for Privatisation: The Government of India has introduced a standardised bidding framework for the privatisation of distribution licensees, aimed at improving efficiency and service delivery in electricity distribution has been increased
- Drafted Power Rules: The Ministry of Power,, GoI has promulgated the Drafted Power Rules, 2020. The purpose of this rule is to provide a mechanism for recovering damages relating to changes in legal events under a power purchase agreement, to provide clarity and efficiency in the legal system.
- Relaxation in Working Capital Limit of Discoms: Under Ujwal Discom Assurance Scheme, the government has relaxed the working capital limit of discoms. This mechanism enables DISCOMs to implement investment schemes that facilitate distribution of payments to utilities and independent power producers over time.
- Guidelines for Procurement of RTC Capacity: The Government issued guidelines for the procurement of real-time continuous capacity from renewable electricity generators operating on grid, including coal; Combining electricity work with electricity This directive aims to promote the integration and efficient use of renewable energy in addition to thermal energy generation.
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Analysis of Its Financial Performance
If you want to invest in RattanIndia Power, it is very important for you as an investor to understand its financial performance over years. Here is a detailed analysis of its financial performance:
- PE Ratio: RattanIndia Power has a PE ratio of -9.03, this ratio indicates that the stock may be unrecognised to its earnings prospective, although a negative PE ratio should be interpreted with caution.
- Share Price: The current share price of RattanIndia Power is Rs 17.29, which can be evaluated using speculative valuations to ensure that it is not overvalued or overvalued.
- Return on Assets: With a ROA of 2.98%, Rattan India Power shows good performance in terms of return on assets, which could be a concern in terms of future profitability.
- Current Ratio: RattanIndia Power has a current ratio of 1.72, indicating that it has sufficient short-term assets to meet its short-term liabilities, making it vulnerable to unexpected operational and financial challenges.
- Return on Equity: A ROE of 6.11% indicates how well RattanIndia Power is getting a return on shareholders’ investments, indicating that there is room for improvement.
- Debt-to-Equity Ratio: With a debt-to-equity ratio of 0.69, RattanIndia Power maintains a relatively low debt ratio in its capital structure, which is generally positive.
- Sales Improvement: RattanIndia Power reported a slight decline in revenue (-0.87%), highlighting issues in enlarging its top form business.
- Operating margin: The operating margin of 23.49% indicates the operational efficiency of the company, which suggests that it is able to earn profit from every penny of sales.
- Earnings Per Share: Latest EPS of Rs -1.91 indicates a loss in every share, which is a significant consideration for investors who are interested in investing with the company..
Should I Invest in Rattanindia Power?
Yes, if you are thinking of investing in RattanIndia Power it can be a right decision based on several factors. RattanIndia Power turned out to be one of the better investment opportunity firms in the Indian power sector because it has a large amount of infrastructure and has diversified its power generation business.
Therefore, in line with the business positioning that focuses on thermal power generation and renewable energy like solar or wind power generation, RattanIndia Power is well-suited in the current industry transition.
At the same time, this dual approach matches the general global tendencies to sustainability and still has a positive impact on its future profitability. Specifically, as energy sector shareholders looking for value from a firm need to be looking at RattanIndia Power as a long-term investment destination possibly with sustainable growth mandate.
However, it is necessary to have financial consultant advice, conduct research and analysis of the market environment before making any investment.
FAQs:
1. What business does RattanIndia Power Limited operate in?
RattanIndia Power is in the business of producing power through thermal and renewable resources of energy. They own and manage power plants all over India.
2. What is the future outlook for the RattanIndia Power Limited Company?
Factors such as installation of new capacities of renewable energy, reducing the debt levels, changes in regulations and other general factors that affect the power sector could determine future growth.
3. Is RattanIndia Power affiliated to Tata Group?
RattanIndia Power Ltd. was earlier known as Indiabulls Power Ltd is a subsidiary of Indiabulls Real Estate Ltd. The Company is mainly involved in the generation distribution trading and transmission of power business in addition to other related services.
4. Who is the owner of RattanIndia?
Mr. Rajiv Rattan is the Founder of RattanIndia Enterprises Limited and has contributed to the group’s success tremendously.
