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Reliance Communications Ltd

NSE: RCOM BSE: 532712

0.86

(-4.44%)

Mon, 02 Mar 2026, 06:23 pm

Reliance Communications Analysis

dividend

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Pros

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    Cons

    • Unable to calculate sustainability of dividends as Reliance Communications has not reported any payouts.
    • Unable to evaluate Reliance Communications's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
    • Unable to evaluate Reliance Communications's dividend against the top 25% market benchmark as the company has not reported any payouts.

    health

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    Pros

    • Whilst loss making Reliance Communications has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 42.9% per year.
    • Whilst loss making Reliance Communications has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.
    • Reliance Communications's cash and other short term assets cover its long term commitments.
    • Low level of unsold assets.
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    Cons

    • Reliance Communications's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
    • Debt is not well covered by operating cash flow (0.8%, less than 20% of total debt).
    • Reliance Communications has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.
    • Irrelevant to check if Reliance Communications's debt level has increased considering it has negative shareholder equity.
    • Reliance Communications has negative shareholder equity (liabilities exceed assets), this is a more serious situation compared with a high debt level.

    management

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    Pros

    • The tenure for the Reliance Communications management team is about average.
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    Cons

    • The average tenure for the Reliance Communications board of directors is less than 3 years, this suggests a new board.

    misc

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    Pros

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      Cons

      • Reliance Communications is not covered by any analysts.
      • Reliance Communications has significant price volatility in the past 3 months.

      past

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      Pros

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        Cons

        • Unable to compare Reliance Communications's 1-year earnings growth to the 5-year average as it is not currently profitable.
        • Reliance Communications does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
        • It is difficult to establish if Reliance Communications has efficiently used its assets last year compared to the Asia Wireless Telecom industry average (Return on Assets) as it is loss-making.
        • It is difficult to establish if Reliance Communications improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to its liabilities exceeding its assets.
        • It is difficult to establish if Reliance Communications has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) due to its liabilities exceeding its assets.
        • Unable to compare Reliance Communications's 1-year growth to the Asia Wireless Telecom industry average as it is not currently profitable.

        value

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        Pros

        • Reliance Communications's share price is below the future cash flow value, and at a moderate discount (> 20%).
        • Reliance Communications's share price is below the future cash flow value, and at a substantial discount (> 40%).
        • NSEI:RCOM is up 23.5% outperforming the Wireless Telecom industry which returned -1.7% over the past month.
        • NSEI:RCOM is up 23.5% outperforming the market in India which returned 8% over the past month.
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        Cons

        • Reliance Communications has negative assets, we can't compare the value of its assets to the Asia Wireless Telecom industry average.
        • Reliance Communications is loss making, we can't compare its value to the Asia Wireless Telecom industry average.
        • Reliance Communications is loss making, we can't compare the value of its earnings to the India market.
        • RCOM underperformed the Wireless Telecom industry which returned -5.1% over the past year.
        • RCOM underperformed the Market in India which returned -14.5% over the past year.

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        Pocketful Fintech Capital Private Limited (CIN U65999DL2021PTC390548) | The SEBI Registration No. allotted to us is INZ000313732. NSE Member Code: 90326 | BSE Member Code: 6808 | MCX Member Code: 57120 DP | CDSL: 12099800