Reliance Infrastructure
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Price Performance
Vista Outlook
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Management's commentary indicates a positive outlook for Reliance Infrastructure, driven by an expanding infrastructure sector and favorable government policies. The company's revenue growth is expected to accelerate beyond historical trends, supported by increased project awards and execution capabilities in the engineering, procurement, and construction (EPC) space. This aligns with Vista's forecast of improving profitability and expanding margins, as the company capitalizes on the recovery in infrastructure projects, particularly in highway development. The stable balance sheet, characterized by moderate leverage, further supports this outlook. While competitive pressures persist, the overall market environment remains conducive for growth, with a projected CAGR of approximately 8.81% for the sector. The macroeconomic backdrop in India, marked by robust growth and favorable liquidity conditions, enhances the investment case for Reliance Infrastructure. Over the next 12-24 months, key opportunities lie in the execution of new projects and potential expansions in renewable energy. However, watchpoints include the impact of geopolitical challenges and fluctuations in crude oil prices, which could affect operational costs and margins. Overall, Vista's investment outlook reflects a balanced assessment of these dynamics, with a target price indicating modest upside potential
Why We Like This Stock
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Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 22,805 | 24,441 | 20,441 | 21,433 | 22,073 |
| Profit Before Tax (Cr.) | -494 | 7,386 | 3,263 | 4,622 | 4,451 |
| PBT Margin | -2.2% | 30.2% | 1596.3% | 21.6% | 20.2% |
| Net Profit (Cr.) | -1,024 | 8,064 | 3,169 | 3,467 | 2,003 |
| Earnings Per Share | -36.3 | 93.6 | 30.1 | 50.9 | 49.0 |
Analyst Recommendations
No analyst recommendations available.
Company Overview
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Reliance Infrastructure Limited, an infrastructure company, generates, transmits, and distributes electrical power to residential, industrial, commercial, and other consumers in India. It operates through three segments: Power; Engineering and Construction (E&C); and Infrastructure. The Power segment engages in the operation of 220 megawatts of combined cycle power plant at Samalkot, 48 megawatts of combined cycle power plant at Mormugao, 9.39 megawatts wind farm at Chitradurga, and 165 megawatts of combined cycle power plant at Kochi, as well as the trading of power. Its E&C segment offers value added services in construction, erection, commissioning, and contracting. The Infrastructure segment is involved in the development, operation, and maintenance of toll roads, metro rail transit system, and airports. The company also engages in the exploration and production of 4 coal bed methane blocks covering an area of 3,266 square kilometers in Madhya Pradesh, Andhra Pradesh, and Rajasthan; and CBM gas block, as well as the rehabilitation and upgradation of NH-66. In addition, it is also involved in the operation of toll road concessions and urban transport systems; operation and maintenance of airports; manufacture of cement and defense systems; electric and electronic products; battery business; telecom and transmission business; and IT business. Reliance Infrastructure Limited was incorporated in 1929 and is based in Mumbai, India.