Reliance Communications Ltd
NSE:RCOM

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Reliance Communications Ltd Logo
Reliance Communications Ltd
NSE:RCOM
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Price: 1.88 INR Market Closed
Market Cap: 5.2B INR
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Intrinsic Value

RCOM's intrinsic value estimate is unreliable because it is based only on its multiples and doesn't use a DCF valuation.

The intrinsic value of one RCOM stock under the Base Case scenario is 3.31 INR. Compared to the current market price of 1.88 INR, Reliance Communications Ltd is Undervalued by 43%.

The Intrinsic Value is calculated as the average of DCF and Relative values:

RCOM Intrinsic Value
3.31 INR
Undervaluation 43%
Intrinsic Value
Price
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Valuation Backtest
Reliance Communications Ltd

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Backtest Conclusion
Very Attractive
Current Valuation
+45%
Avg Valuation
-12%
Worst Valuation
-49%
Best Valuation
+45%

Stock is trading at its lowest valuation over the past 5 years.

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Fundamental Analysis

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Financials
Annual
Quarterly
TTM
Annual
Quarterly
TTM

Balance Sheet Decomposition
Reliance Communications Ltd

Current Assets 323.8B
Cash & Short-Term Investments 5B
Receivables 7B
Other Current Assets 311.8B
Non-Current Assets 41.8B
Long-Term Investments 370m
PP&E 15.3B
Intangibles 14.3B
Other Non-Current Assets 11.8B
Current Liabilities 1.2T
Accounts Payable 36.7B
Short-Term Debt 468B
Other Current Liabilities 674.4B
Non-Current Liabilities 7.8B
Long-Term Debt 4.4B
Other Non-Current Liabilities 3.4B
Efficiency

Earnings Waterfall
Reliance Communications Ltd

Revenue
3.8B INR
Cost of Revenue
-1.7B INR
Gross Profit
2.1B INR
Operating Expenses
-3.4B INR
Operating Income
-1.3B INR
Other Expenses
-73.4B INR
Net Income
-74.7B INR

Free Cash Flow Analysis
Reliance Communications Ltd

Last Value
3-Years Average
FCF Margin
Conversion Rate
Fundamental Scores

RCOM Profitability Score
Profitability Due Diligence

Reliance Communications Ltd's profitability score is 37/100. The higher the profitability score, the more profitable the company is.

Positive Gross Profit
Positive 3-Year Average ROE
Declining ROIC
Positive ROE
37/100
Profitability
Score

Reliance Communications Ltd's profitability score is 37/100. The higher the profitability score, the more profitable the company is.

RCOM Solvency Score
Solvency Due Diligence

Reliance Communications Ltd's solvency score is 17/100. The higher the solvency score, the more solvent the company is.

Low D/E
Long-Term Solvency
Short-Term Solvency
Positive Net Debt
17/100
Solvency
Score

Reliance Communications Ltd's solvency score is 17/100. The higher the solvency score, the more solvent the company is.

Wall St
Price Targets

RCOM Price Targets Summary
Reliance Communications Ltd

There are no price targets for RCOM.
Lowest
Price Target
Not Available
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Price Target
Not Available
Highest
Price Target
Not Available
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Dividends

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Dividend Per Share
N/A
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Growth 5Y
Growth 10Y
Dividend Safety Score
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0
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Shareholder Yield

Current shareholder yield for RCOM is .

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Buyback Yield
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Ownership

RCOM Insider Trading
Buy and sell transactions by insiders

Cumulative Transactions Amount
Period Sold Bought Net
3 Months
6 Months
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Profile

Reliance Communications Ltd Logo
Reliance Communications Ltd

Country

India

Industry

Telecommunication

Market Cap

5.2B INR

Dividend Yield

0%

Description

Reliance Communications Ltd. engages in the provision of telecommunication services. The company is headquartered in Navi Mumbai, Maharashtra. The company went IPO on 2007-04-30. The Company’s businesses include India Data Center Business and India National Long Distance business. The company conducts a substantial portion of its business through subsidiary companies, including Globalcom IDC Limited and Reliance Infratel Limited. The company provides wireless telecom services to the business and government segments. These include a comprehensive portfolio spanning network connectivity, cloud networking, data center services, enterprise voice, cloud telephony, access number services, collaboration services, wholesale voice and value-added service (VAS). The firm serves approximately 40,000 businesses of all sizes-from multinational conglomerates to small and mid-size enterprises (SMEs), such as the banking, financial services and insurance (BFSI); manufacturing; logistics; healthcare; information technology (IT) and information technology-enabled services (ITeS); and over the top (OTT).

Contact

MAHARASHTRA
Navi Mumbai
Dhirubhai Ambani Knowledge City, H Block, Thane Belapur Road, Koparkhairane
+918002001100
www.rcom.co.in

IPO

2007-04-30

Employees

614

Officers

Chief Financial Officer
Mr. Srinivasan Gopalan
Company Secretary & Compliance Officer
Mr. Rakesh Gupta
Senior Vice President of Global Product Management
Mr. Braham Singh

See Also

Discover More
What is the Intrinsic Value of one RCOM stock?

The intrinsic value of one RCOM stock under the Base Case scenario is 3.31 INR.

Is RCOM stock undervalued or overvalued?

Compared to the current market price of 1.88 INR, Reliance Communications Ltd is Undervalued by 43%.

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