Reliance Infrastructure Ltd. is a part of the Reliance Group. It is the third-largest player in the infrastructure business in India.Market Capitalisation
The market capitalisation of Reliance Infrastructure Ltd. (RInfra) as on 26 June 2018 was a little over Rs.10,480 crore.
Company’s Wealth and Recent Performance
- Reliance Infrastructure Ltd. recorded a total income of Rs.28,724 crore for the financial year 2017-18, an increase of 3% YoY (Year-over-Year), as against Rs.27,989 crore in the financial year 2016-17. RInfra posted a net profit of Rs.1,339 crore in FY 2017-18 as compared to Rs.1,425 crore in FY 2016-17.
- In FY 2017-18, the company’s revenue increased to Rs.1,093 crore, up 13%. The revenue was received from RInfra’s 11 projects.
- RInfra reported a total income of Rs.6,737 crore for the Q4 ended 31 March 2017. It posted an increase of 12% as compared to Rs.6,022 crore in Q4 FY 2016-17. The company had a strong quarter as it posted a 291% increase in the consolidated net profit for the Q4 ended 31 March 2018 at Rs.60.14 crore owing to the higher revenues.
- The company’s revenues from the Mumbai Metro were at Rs.291 crore, up 23% in FY 2017-18.
- The Board of the company recommended a dividend of Rs.9.5 per share for the financial year. At the end of FY 2017-18, RInfra’s consolidated net worth was at Rs.24,219 crore and the book value of 921 per share.
- The company’s revenue from the infrastructure business saw an increase of 20% YoY while a 13% YoY revenue growth from the road business. In case of the Mumbai Metro business, RInfra posted an increase of 23% of YoY revenue.
- In the last one year, the company bagged projects worth Rs.15,700 crore. In May 2018, RInfra and Astaldi S.p.A (Italy) bagged an EPC contract for building the Versova-Bandra Sea Link Project in Mumbai for Rs.7,000 crore.
Reliance Infrastructure Ltd. Stock Trends in 2018
- The opening price of Reliance Infrastructure Ltd. stock on 1 January 2018 was Rs.554 on NSE. The price of the stock did not change much by the mid of the month. However, it fell by the end of the month by 50 points. The opening price of the stock on 31 January 2018 was Rs.507. In the month of February, the stock fell by over 85 points in the first week itself. By the mid of February, the stock price was at Rs.459. The opening price of the scrip was at Rs.453 by the end of the month. In March, the scrip changed marginally and ended the month at Rs.428. The stock price crossed Rs.460 in the month of April and ended the month at Rs.444.
- The price of the stock did not fluctuate a lot in the month of May. The scrip fell by a few points towards mid-month as the company was considering to raise funds. By the end of the month, the price of the stock was at Rs.441. In June, the scrip was pretty stable at the beginning of the month. However, it fell by over 44 points by the end of the month. The opening price of the stock on 29 June 2018 was Rs.392.
Reliance Infrastructure Ltd. Stock Trends in 2016 and 2017
- The opening price of the Reliance Infrastructure stock on 1 January 2016 was Rs.543 on NSE. The scrip gained more than 40 points in the first 10 days of the month. However, after the first 15 days of the month, the price of the stock fell by around 30 points. The opening price of the stock on 29 January 2016 was Rs.457. In the month of February, the scrip continued to fall and was down by around 50 points by the mid-month. It ended the month at Rs.413. The stock picked up the pace in the month of March and increased by over 105 points in the first 10 days of the month. However, it was stable for the rest of the month. In the month of April, the scrip gained strength by mid-month and was at Rs.572, but fell gradually towards the end.
- At the beginning of May, the price of the stock was at Rs.539. It changed marginally throughout the month. In June, the scrip fell by 30-40 points in the month. The opening price of the stock by the end of the month was Rs.538. The stock price picked up the pace in July and was up by around 30 points and was stable towards the end of the month. In August, the scrip crossed the Rs.600 mark at the beginning of the month. However, it failed to remain in that range throughout the month. The stock price fluctuated marginally and ended the month at Rs.597.
- In the month of September and October, the scrip was pretty stable and didn’t change much. The opening price of the stock by the end of October was Rs.544. In November, the scrip fell by more than 60 points by mid-month. By the end of December 2016, the price of the stock was at Rs.462.
- The opening price of Reliance stock on 2 January 2017 was Rs.474 on NSE. The scrip was increased by more than 45 points by the end of the month. It increased by another 40 points by mid-February. The opening price of the stock by the end of February was Rs.568. In the month of March, the stock price was pretty stable and witnessed a marginal change. The scrip increased around 15 points in April and ended the month at Rs.584.
- At the beginning of May, the price of the stock crossed the Rs.600 mark. However, it fell towards the end of the month by more than 150 points. The opening price of the stock at the end of May was Rs.453. In June, the scrip did not report a major change in the price. The stock price increased gradually in July by more than 25 points and ended the month at Rs.527. In the month of August, the scrip fell by 55 points by mid-month and was stable towards the end.
- The scrip was stable in September and changed marginally at the beginning of the month. However, it fell by more than 40 points by the end of the month. The opening price of the stock on 23 September 2017 was Rs.466. In the month of October, the scrip fell by around 30 points. The price of the stock in November fell by around 85 points in the first 15 days of the month. The scrip was stable by the end of the month. In December, the scrip saw a marginal change till mid-month, however, it gained strength and increased by around 108 points by the end of the month. The opening price of the stock at the end of December 2017 was Rs.566.
Should you invest in Reliance Infrastructure Ltd.?
- The stock price of Reliance Infrastructure Ltd. has been stable for the past couple of years. It has also not witnessed unusual market fluctuations. The company has bagged new projects for upcoming years as well.
- Investing in the stock of Reliance Infrastructure Ltd. for a long-term purpose could be a good investment option. However, it is strongly advised that you do research before investing your hard-earned money in the stock market as it is risky due to its volatile nature.
Reliance Infrastructure Ltd. deals in developing projects via various Special Purpose Vehicles (SPVs) in different sectors including airport, power, roads, and metro rail in the infrastructure space as well as the defence sector. Moreover, the company also provides Engineering, Procurement and Construction (EPC) services in areas like developing road projects and power infrastructure. RInfra is the first private player in the country to execute metro rail projects (Mumbai Metro One). The company has a project portfolio of 9,000 MW of thermal power, 1,000 km of roads and 140 MW of solar power. Reliance Infrastructure was incorporated in 1929. In 2002, Reliance Energy took over Bombay Suburban Electric Supply (BSES) following which the company’s name was changed to Reliance Infrastructure Ltd. in 2008.
Management of the company
Mr. Anil Dhirubhai Ambani, Chairman - Reliance Group
Mr. Ambani is the chairman of Reliance Group which has a presence in all the top sectors including financial services, telecommunications, media and entertainment, national road highways, metro rail systems, education, and healthcare. He is a B.Sc graduate and has completed his MBA from Wharton School, University of Pennsylvania.
Mr. Lalit Jalan - Chief Executive Officer
Mr. Lalit Jalan took over as the Chief Executive Officer (CEO) at Reliance Infrastructure Ltd. in August 2016. He serves on the board of Reliance Energy Transmission Limited and Jaybee Mercantiles Limited. He has a B.Tech degree from the Indian Institute of Technology (IIT). He also completed his MBA in Finance from the Wharton School and MS in Computer Science from Moore school, University of Pennsylvania.
Listings in NSE, BSE, and Indices
The stock of Reliance Infrastructure Ltd. is available for trading on the two major stock exchanges of India - The National Stock Exchange Limited (NSE) and The Bombay Stock Exchange (BSE).
Sector: Infrastructure - Power- generation and distribution
The company forms a part of important indices like:
- Nifty 200
- Nifty 500
- Nifty Energy
- Nifty Commodities
- S&P BSE 200
- S&P BSE 500
H-Block, 1st Floor,
Dhirubhai Ambani Knowledge City,
Navi Mumbai - 400 710.
Stocks vs. Mutual Funds: here's what we recommend
Stock market investments require a lot of research and knowledge. They do not generally offer any tax benefits and are regarded as high-risk investments. Hence,it is crucial to have a diversified portfolio. At Bankbazaar, we encourage our readers to invest on mutual funds.It doesn't require a lot of knowledge and equity linked mutual fund schemes offer tax benefits. Additionally, since mutual funds comprise stocks from multiple companies, they help in building a diversified portfolio.
The contents of this post/blog does not constitute financial or other professional advice nor does it imply in any manner a principal-agent relationship, and is not a professional advice on a specific financial matter.