Reliance Capital Stock Price Analysis and Forecast

Reliance Capital's stock price has been on a rollercoaster ride over the years, with fluctuations that can be attributed to various market and economic factors. The stock price has shown a downward trend in recent years, with a significant decline in 2019.

In 2018, the stock price of Reliance Capital was around ₹115 per share, but it dropped to ₹50 per share by the end of 2019. This decline can be attributed to the company's struggles with debt and its decision to sell its stake in its life insurance business.

Despite the decline, Reliance Capital's stock price has shown some signs of recovery in recent months. The company has been working to reduce its debt and has made significant progress in this area.

Take a look at this: Reliance Home Finance Share Price

Reliance Capital's financial performance has been a mixed bag over the years. The company's operating revenue has fluctuated, with a high of 7343 crores in Sep 2024 and a low of 3596 crores in Jun 2022.

The company's profit after tax has also seen significant variations, ranging from a loss of 497 crores in Jun 2022 to a profit of 304 crores in Sep 2024. The adjusted earnings per share have also seen a significant swing, from a loss of 18.2 in Jun 2022 to a profit of 9 in Sep 2024.

Here's a breakdown of the company's profit after tax and adjusted earnings per share over the years:

These fluctuations in financial performance may have an impact on the stock price of Reliance Capital.

Reliance Capital's financial performance has been quite volatile over the past few years. In the most recent quarter (Sep 2023), the company's operating revenue was a whopping 6393 crores, a significant increase from the previous quarter.

The company's operating profit, however, took a hit, coming in at -225 crores. This is a stark contrast to the previous quarter, where they reported an operating profit of 466 crores.

Here's a breakdown of Reliance Capital's quarterly results:

The company's profitability has been impacted by various factors, including interest expenses and depreciation. In the most recent quarter, their interest expense was 8 crores, while depreciation was 27 crores.

Looking at the bigger picture, Reliance Capital's financial performance has been on a rollercoaster ride. In the last quarter of 2023, their operating revenue was 6098 crores, while in the same quarter of 2022, it was 5218 crores.

Worth a look: Capital Expense Depreciation

Cash Flow is a crucial aspect of a company's financial performance. It's a snapshot of the money moving in and out of the business over a specific period.

The cash flow from operating activities can be quite volatile, as seen in the example of Reliance Capital. In Mar 2014, the company had a cash flow of 1471 Cr., but by Mar 2015, it had turned negative at -1002 Cr. This fluctuation can be attributed to various factors such as changes in sales, production costs, and inventory levels.

Cash Flow from Investing Activities can also significantly impact a company's financial performance. In Mar 2014, Reliance Capital had a cash outflow of -214 Cr. from investing activities, but by Mar 2015, it had a cash inflow of 2144 Cr. This indicates that the company made significant investments during this period.

A company's financing activities can also have a substantial impact on its cash flow. In Mar 2014, Reliance Capital had a cash outflow of -276 Cr. from financing activities, but by Mar 2015, it had a cash outflow of -2011 Cr. This indicates that the company was facing significant financing challenges during this period.

Here's a summary of the cash flow from operating, investing, and financing activities for Reliance Capital over the past 10 years:

The net cash inflow or outflow can be a key indicator of a company's financial health. In Mar 2014, Reliance Capital had a net cash inflow of 981 Cr., but by Mar 2015, it had a net cash outflow of -869 Cr. This indicates that the company was facing significant cash flow challenges during this period.

Ratios are a crucial aspect of financial performance, helping investors and analysts understand a company's financial health. Reliance Capital's earnings per share (EPS) has fluctuated over the years, ranging from 30.74 Rs in Mar 2014 to -321.14 Rs in Mar 2022.

The company's operating margin has also seen significant changes, dropping to -32.96 in Mar 2021 but recovering to 2.37 in Mar 2024. This indicates that Reliance Capital's ability to generate profits from its core operations has been impacted by various factors.

Net profit margin is another important ratio, which measures a company's ability to generate profits from its sales. Reliance Capital's net profit margin has been negative in some years, such as -25.04 in Mar 2018, but has also shown positive growth in other years, like 1.82 in Mar 2024.

Here's a summary of Reliance Capital's key ratios:

The company's return on assets (ROA) has also been impacted, dropping to -14.35 in Mar 2020 but recovering to 0.63 in Mar 2024. This indicates that Reliance Capital's ability to generate profits from its assets has been affected by various factors, but is showing signs of improvement.

Reliance Capital's financial statements reveal a concerning trend. The company's shareholder's funds have been decreasing since 2015, dropping from 13,324 crores to 11,127 crores by 2024.

The company's borrowings have been increasing, from 14,178 crores in 2014 to 17,034 crores in 2024. This significant jump in borrowings could be a sign of financial strain.

In contrast, the company's investments have been steadily increasing, from 14,137 crores in 2014 to 56,688 crores in 2024. This is a positive trend, as investments can provide a source of revenue.

Here is a breakdown of Reliance Capital's total liabilities and assets over the years:

The company's current assets have been decreasing, from 13,361 crores in 2014 to 12,523 crores in 2024. This could be a sign of liquidity issues.