Reliance Infrastructure Limited Analysis
Reliance Infrastructure holds a debt-to-equity ratio of 0.771. Reliance Infrastructure's financial risk is the risk to Reliance Infrastructure stockholders that is caused by an increase in debt.
Asset vs Debt
Equity vs Debt
Reliance Infrastructure's liquidity is one of the most fundamental aspects of both its future profitability and its ability to meet different types of ongoing financial obligations. Reliance Infrastructure's cash, liquid assets, total liabilities, and shareholder equity can be utilized to evaluate how much leverage the Company is using to sustain its current operations. For traders, higher-leverage indicators usually imply a higher risk to shareholders. In addition, it helps Reliance Pink Sheet's retail investors understand whether an upcoming fall or rise in the market will negatively affect Reliance Infrastructure's stakeholders.
For most companies, including Reliance Infrastructure, marketable securities, inventories, and receivables are the most common assets that could be converted to cash. However, for Reliance Infrastructure Limited, the most critical issue when managing liquidity is ensuring that current assets are properly aligned with current liabilities. If they are not, Reliance Infrastructure's management will need to obtain alternative financing to ensure there are always enough cash equivalents on the balance sheet to meet obligations.
Given that Reliance Infrastructure's debt-to-equity ratio measures a Company's obligations relative to the value of its net assets, it is usually used by traders to estimate the extent to which Reliance Infrastructure is acquiring new debt as a mechanism of leveraging its assets. A high debt-to-equity ratio is generally associated with increased risk, implying that it has been aggressive in financing its growth with debt. Another way to look at debt-to-equity ratios is to compare the overall debt load of Reliance Infrastructure to its assets or equity, showing how much of the company assets belong to shareholders vs. creditors. If shareholders own more assets, Reliance Infrastructure is said to be less leveraged. If creditors hold a majority of Reliance Infrastructure's assets, the Company is said to be highly leveraged.
Reliance Infrastructure Limited is undervalued with Real Value of 0.0 and Hype Value of 0.0. The main objective of Reliance Infrastructure pink sheet analysis is to determine its intrinsic value, which is an estimate of what Reliance Infrastructure Limited is worth, separate from its market price. There are two main types of Reliance Infrastructure's stock analysis: fundamental analysis and technical analysis.
The Reliance Infrastructure pink sheet is traded in the USA on PINK Exchange, with the market opening at 09:30:00 and closing at 16:00:00 every Mon,Tue,Wed,Thu,Fri except for officially observed holidays in the USA. Here, you can get updates on important government artifacts, including earning estimates, SEC corporate filings, announcements, and Reliance Infrastructure's ongoing operational relationships across important fundamental and technical indicators.
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Reliance Pink Sheet Analysis Notes
The company has price-to-book ratio of 0.42. Typically companies with comparable Price to Book (P/B) are able to outperform the market in the long run. Reliance Infrastructure recorded a loss per share of 1.37. The entity last dividend was issued on the 12th of September 2018. Reliance Infrastructure Limited, an infrastructure company, generates, transmits, and distributes electrical power to residential, industrial, commercial, and other consumers in India. Reliance Infrastructure Limited was incorporated in 1929 and is based in Mumbai, India. Reliance Infrastructure operates under UtilitiesRegulated Electric classification in the United States and is traded on OTC Exchange. It employs 5157 people.The quote for Reliance Infrastructure Limited is published daily by the National Quotation Bureau and the company does not need to meet minimum requirements or file with the SEC. To find out more about Reliance Infrastructure Limited contact Punit Garg at 91 22 4303 1000 or learn more at https://www.rinfra.com.Reliance Infrastructure Investment Alerts
| Reliance Infrastructure is not yet fully synchronised with the market data | |
| Reliance Infrastructure has some characteristics of a very speculative penny stock | |
| Reliance Infrastructure has a very high chance of going through financial distress in the upcoming years | |
| Reliance Infrastructure Limited has accumulated 54.52 B in total debt with debt to equity ratio (D/E) of 0.77, which is about average as compared to similar companies. Reliance Infrastructure has a current ratio of 0.45, indicating that it has a negative working capital and may not be able to pay financial obligations in time and when they become due. Debt can assist Reliance Infrastructure until it has trouble settling it off, either with new capital or with free cash flow. So, Reliance Infrastructure's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Reliance Infrastructure sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Reliance to invest in growth at high rates of return. When we think about Reliance Infrastructure's use of debt, we should always consider it together with cash and equity. | |
| The entity reported the revenue of 184.11 B. Net Loss for the year was (9.38 B) with profit before overhead, payroll, taxes, and interest of 58.72 B. |
Reliance Market Capitalization
The company currently falls under 'Small-Cap' category with a current market capitalization of 750.48 M. Market capitalization usually refers to the total value of a company's stock within the entire market. To calculate Reliance Infrastructure's market, we take the total number of its shares issued and multiply it by Reliance Infrastructure's current market price. To manage market risk and economic uncertainty, many investors today build portfolios that are diversified across equities with different market capitalizations. However, as a general rule, conservative investors tend to hold large-cap stocks, and those looking for more risk prefer small-cap and mid-cap equities.Reliance Profitablity
The company has Profit Margin (PM) of (0.04) %, which may suggest that it does not properly executes on its current pricing strategies or is unable to control all of the operational costs. This is way below average. Similarly, it shows Operating Margin (OM) of 0.11 %, which suggests for every 100 dollars of sales, it generated a net operating income of $0.11.Reliance Infrastructure Debt to Cash Allocation
Many companies such as Reliance Infrastructure, eventually find out that there is only so much market out there to be conquered, and adding the next product or service is only half as profitable per unit as their current endeavors. Eventually, the company will reach a point where cash flows are strong, and extra cash is available but not fully utilized. In this case, the company may start buying back its stock from the public or issue more dividends.
Reliance Infrastructure Limited has accumulated 54.52 B in total debt with debt to equity ratio (D/E) of 0.77, which is about average as compared to similar companies. Reliance Infrastructure has a current ratio of 0.45, indicating that it has a negative working capital and may not be able to pay financial obligations in time and when they become due. Debt can assist Reliance Infrastructure until it has trouble settling it off, either with new capital or with free cash flow. So, Reliance Infrastructure's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Reliance Infrastructure sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Reliance to invest in growth at high rates of return. When we think about Reliance Infrastructure's use of debt, we should always consider it together with cash and equity.Reliance Infrastructure Assets Financed by Debt
Typically, companies with high debt-to-asset ratios are said to be highly leveraged. The higher the ratio, the greater risk will be associated with the Reliance Infrastructure's operation. In addition, a high debt-to-assets ratio may indicate a low borrowing capacity of Reliance Infrastructure, which in turn will lower the firm's financial flexibility.Be your own money manager
As an investor, your ultimate goal is to build wealth. Optimizing your investment portfolio is an essential element in this goal. Using our pink sheet analysis tools, you can find out how much better you can do when adding Reliance Infrastructure to your portfolios without increasing risk or reducing expected return.Did you try this?
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Other Consideration for investing in Reliance Pink Sheet
If you are still planning to invest in Reliance Infrastructure check if it may still be traded through OTC markets such as Pink Sheets or OTC Bulletin Board. You may also purchase it directly from the company, but this is not always possible and may require contacting the company directly. Please note that delisted stocks are often considered to be more risky investments, as they are no longer subject to the same regulatory and reporting requirements as listed stocks. Therefore, it is essential to carefully research the Reliance Infrastructure's history and understand the potential risks before investing.
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