Reliance Infrastructure Limited (commonly referred to as R-Infra) is a key entity within the Reliance Group. The company operates across diverse sectors, including infrastructure development, power generation and distribution, and EPC (Engineering, Procurement, and Construction) services. Headquartered in Mumbai, Reliance Infra has played a significant role in India’s infrastructure landscape, with projects spanning roads, metro rail, airports, and power utilities.
Reliance Infra Market Overview:
| Company Essentials | Value |
|---|---|
| Market Cap | ₹ 9,279.37 Cr. |
| Enterprise Value | ₹ 12,156.73 Cr. |
| No. of Shares | 39.61 Cr. |
| P/E | 14.3 |
| Face Value | ₹ 10 |
| Div. Yield | 0 % |
| Promoter Holding | 16.5 % |
| EPS (TTM) | ₹ 16.39 |
| Sales Growth | -47.57% |
| Profit Growth | 39.64 % |
Core Business Segments of Reliance Infra:
- Infrastructure Development:
R-Infra has been a leading player in developing toll roads, metro systems, and urban transport infrastructure. Some notable projects include the Mumbai Metro One and the Delhi-Agra Toll Road. - Power Sector:
The company manages power generation, distribution, and transmission networks, primarily in Maharashtra and Delhi. Despite its strong market presence in this segment, operational inefficiencies and high costs have created challenges in maintaining profitability. - EPC Services:
R-Infra provides comprehensive EPC solutions for infrastructure projects, including power plants, bridges, and industrial facilities. This segment continues to contribute significantly to the company’s revenue streams.
Table of Contents
Reliance Infra Share Price Target 2025 to 2030
| Year | Optimistic Target | Pessimistic Target | Key Factors Considered |
|---|---|---|---|
| 2025 | ₹180 | ₹90 | Debt restructuring, improved asset monetization, infrastructure project success. |
| 2026 | ₹200 | ₹110 | Reduced interest costs, growth in metro and EPC revenues. |
| 2027 | ₹250 | ₹120 | Stabilized financials, economic growth driving infrastructure spending. |
| 2028 | ₹300 | ₹150 | Completion of key infrastructure projects, global infrastructure demand. |
| 2029 | ₹350 | ₹180 | Enhanced operational efficiency, reduced leverage. |
| 2030 | ₹400 | ₹200 | Successful turnaround strategy, diversified revenue streams. |
Key Financial Challenges with Reliance Infra:
Debt Burden:
- Reliance Infrastructure has a high debt-to-equity ratio, which limits its ability to raise fresh capital and impacts its profitability.
- Despite asset monetization efforts, debt repayment has been slower than expected.
Operating Losses:
- Consistent operational losses are attributed to increased costs in projects and reduced profitability in its power and infrastructure segments.
Revenue Decline:
- Revenue fell due to reduced contract wins, competition, and economic slowdown affecting infrastructure spending.
Market Sentiment:
- Declining market capitalization and stock price reflect reduced investor trust.
Highlight of Strengths
- Being part of the Reliance Group ensures visibility and legacy trust despite financial setbacks.
Diversified Portfolio:
- R-Infra operates across multiple sectors, including metro projects, power distribution, and EPC contracts, which offer revenue diversity.
Asset Monetization:
- Initiatives to sell non-core assets (e.g., road projects) have helped reduce debt, though at a slow pace.
Brand Recognition:
- Being part of the Reliance Group ensures visibility and legacy trust despite financial setbacks.
Peers & Comparison of Reliance Infra:
| Company | Price (₹) | Market Cap (₹ Cr.) | P/E | EPS (₹) |
|---|---|---|---|---|
| Acme Solar Holdings | 207.70 | 12,544.08 | 29.90 | 6.93 |
| Nava | 432.00 | 12,478.66 | 31.92 | 13.47 |
| Inox Wind Energy | 9,183.50 | 10,973.41 | 12.72 | 716.19 |
| JP Power Ventures | 14.87 | 10,184.24 | 11.22 | 1.33 |
| Waaree Renewables | 961.35 | 10,021.74 | 53.20 | 18.07 |
| Reliance Infra | 234.25 | 9,271.45 | 14.28 | 16.39 |
| GMR Power and Urban | 100.10 | 7,157.66 | 6.72 | 14.91 |
| RattanIndia Power | 10.97 | 5,880.27 | 0 | -1.87 |
Shareholdings of Reliance Infra:
| Shareholder Category | Holding (%) |
|---|---|
| Public | 73.15% |
| Promoter | 16.50% |
| Foreign Institutional Investors (FII) | 9.00% |
| Domestic Institutional Investors (DII) | 1.35% |
Profit & Loss Statement of Reliance Infra (2020-2024):
| Particulars | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 |
|---|---|---|---|---|---|
| Net Sales (₹ Cr.) | 1,319.07 | 1,689.15 | 1,467.37 | 810.00 | 424.68 |
| Total Expenditure (₹ Cr.) | 1,358.23 | 1,786.40 | 1,640.46 | 1,090.32 | 817.93 |
| Operating Profit (₹ Cr.) | -39.16 | -97.25 | -173.09 | -280.32 | -393.25 |
| Other Income (₹ Cr.) | 2,019.64 | 884.77 | 505.84 | 297.72 | 323.43 |
| Interest (₹ Cr.) | 919.55 | 1,193.36 | 654.75 | 801.65 | 738.35 |
| Depreciation (₹ Cr.) | 65.31 | 59.24 | 41.96 | 26.99 | 15.78 |
| Exceptional Items (₹ Cr.) | 0.00 | 353.56 | 0.00 | -2,392.66 | -1,113.91 |
| Profit Before Tax (₹ Cr.) | 995.62 | -111.52 | -363.96 | -3,203.90 | -1,937.86 |
| Provision for Tax (₹ Cr.) | -35.65 | -92.44 | 4.33 | -6.20 | -7.61 |
| Net Profit (₹ Cr.) | 1,031.27 | -19.08 | -368.29 | -3,197.70 | -1,930.25 |
| Adjusted EPS (₹) | 39.21 | -0.73 | -14.00 | -90.90 | -48.73 |
Reliance Infrastructure faces a challenging financial journey, with high debt levels and operational inefficiencies significantly impacting its performance. However, the company’s diversified portfolio and potential opportunities in government-backed infrastructure initiatives provide some optimism. For investors, R-Infra represents a high-risk, high-reward scenario. Detailed analysis of its debt reduction strategies, market performance, and economic recovery trends will be crucial for informed decision-making.
Disclaimer
This article is for informational purposes only and should not be considered as financial or investment advice. The data presented is based on available information and analysis of the company’s historical performance and current market conditions. Investors are advised to conduct their own due diligence or consult with a financial advisor before making any investment decisions. The author is not liable for any financial losses arising from investment actions based on this article.