RattanIndia Power
Stock Snapshot
Price Performance
Vista Outlook
Basis of our Recommendation
RattanIndia Power's recent management commentary highlights a commitment to operational efficiency and strategic growth through potential acquisitions and improved coal linkages. These initiatives are crucial as they aim to enhance revenue growth and mitigate supply chain risks, aligning with Vista's forecast of accelerating revenue and improving margins. However, the company faces challenges, including execution risks in coal logistics and ongoing capital expenditures for environmental compliance, which could pressure margins in the near term. The power utilities sector is expanding, driven by rising electricity demand, yet competitive pricing pressures may impact profitability. Overall, while RattanIndia Power is positioned for growth, careful monitoring of execution risks and market dynamics will be essential over the next 12-24 months
Why We Like This Stock
- Management's focus on operational efficiency and technology absorption is expected to enhance margins
- Potential for inorganic growth through acquisitions could drive revenue expansion
- Stable long-term PPA provides a solid revenue foundation amidst market volatility
Things To Watch Out For
- Execution risks related to coal logistics may hinder operational performance
- Ongoing capital expenditures for environmental compliance could pressure margins
- Competitive pricing pressures in the industry may limit profitability despite revenue growth
Key Parameters
Financial Snapshot
View Technicals Analysis →| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 3,364 | 3,284 | 2,991 | 2,987 | 3,101 |
| Profit Before Tax (Cr.) | -1,759 | 222 | 52 | -82 | -50 |
| PBT Margin | -52.3% | 6.8% | 1.7% | -2.7% | -1.6% |
| Net Profit (Cr.) | -1,758 | 222 | 52 | -61 | -38 |
| Earnings Per Share | -3.3 | 0.4 | 0.1 | -0.1 | -0.1 |
Analyst Recommendations
No analyst recommendations available.
Company Overview
Show Company Profile
RattanIndia Power Limited, together with its subsidiary, Poena Power Development Limited, engages in power generation, distribution, trading and transmission, and other ancillary and incidental activities in India. It generates electricity through coal-based thermal power plants with an installed capacity of 2,700 MW located in Amravati and Nasik cities. The company also trades electricity in the open market. The company was formerly known as Indiabulls Power Limited and changed its name to RattanIndia Power Limited in October 2014. RattanIndia Power Limited was incorporated in 2007 and is based in New Delhi, India.