RATTANINDIA INFRASTRUCTURE LTD. – WHY IT’S MY FAVOURITE PICK FOR YOUR SUCCESSFUL PORTFOLIO

Company: RattanIndia Infrastructure (RIL)

Sector: Power Generation and Distribution

NSE: RTNINFRA
BSE: 534597
ISIN: INE834M01019

CMP: BSE 4.14    NSE: 4.15

Target Price

One of the weak areas of our country is its infrastructure. Without proper and enough infra. the county’s economic growth rate also lags a lot. There is a considerable improvement in other areas of infrastructure, like Telecom, Roads, Airoprts and Seaports, except power. Considering the challenging demands for power, power infra companies have a great future ahead.

Since from its inception in 2000, Indiabulls has become the trademark of success and trust. RattanIndia Infrastructure Ltd. being one of the originated wings of Indiabulls, I feel has inherited that success culture and is set ready to fly high.

“RattanIndia is unequivocally committed to all its stakeholders, investors, vendors and policy planners. At RattanIndia, every team member is encouraged to ensure that stakeholders’ interests are uppermost”

They will prove this in the future. Just believe, and proceed to become a partner.

RattanIndia Infrastructure Ltd. is in Diversified Sectors

Currently the company is in three diversified sectors viz. Solar Renewable Energy, Mining and Cements along with the main Thermal Power Generation. All of which are sectors with greater future growth prospects.

In a very short span of time, RattanIndia Infra made its position among the top 500 companies of India. I expect, it will be listed in NIFTY 50 within 5-8 years.

Thermal Power

The current economic growth rate of India needs 300 GW of power within 10 years. To meet this requirement, the current production capacity should be increased by 5 fold to 10 fold. RattanIndia Infra, not only being belonged to the Infra Sector, specifically to the Power Infra, but also being managed by the efficient and successful cultured management, undoubtedly has a great future ahead. I hope so.

Solar Power (Green Energy Initiative)

Mining & Cement

These two are also a part of Infrastructure Sector. Growing demand for Infra in India makes these two sectors also a demanding one. Being the related industries the demand will be in coherence with Infra Sector.

Fundamental Analysis

A Debt Free Company

One of the important factors to be considered while analyzing a stock value is its Debt. This profit eroding factor has its own impact on the company Financials vis a vis  its fundamentals. A debt free company is always preferable over a company with a good amount of debt figure on the balance sheet.

A snap-shot of the RattanIndia Infrastructure Ltd. from its compny web profile.

Market Value of Investments is more than the Market Capital

The current market value of RattanIndia Infrastructure is around Rs.1200 Cr, which much more than its average Market Capital of Rs. 574 Cr. Almost double in numbers.Investors are always on the safe side, in companies with investments that costs more in value than the Market Capital.

Good Percentage of Promoter’s Stake

A good 62.23% of promoter share is an indirect indication that they are having their own interest in the business and its growth.

Low Price To Book Value (P/B)

At the current book value of 18.35 and CMP of 4.14, investors are on extremely safe side. No need to worry about their capital loss. P/B of 0.78 ( Based on Standalone Financial Results) highlighting it as a value pick, to buy and hold.

No Negativity

As a start-up company, we should not look at certain characteristics of a good company. Which mostly include, dividend paying structure, ROE (Return on Equity) or any other ratio /property. Once the business started to be fully functional, then we need to analyze in that direction.

Technical Analysis

Snap-shot of RattanIndia Infrastructure Ltd. Technical Chart Pattern.
RIL’s TECHNICALLY BULLISH CHART

My Final Verdict

Target: Anyways, people always look for target price. Calculating the technicals and fundamentals, the minimum 5 year target price would be at least Rs.100.

If you compromise with my target, decorate your portfolio with this Rattan alias Gem. Don’t trade, as it’s currently in the accumulation phase. Just buy and hold for a long period of time. As long as at least 3 years. If you wish, you can engage with the company forever.

Here we can memorize the famous quote of Mr. Warren Buffet,

In the short-term, the market is a popularity contest; in the long-term it is a weighing machine.

How simple he evaluated the market behavior! True, people are greedy and always run behind the popular stocks. But, finally one day the market weighs of each stock and decides and drags to its true intrinsic value.

Mr. Warren Buffet’s success story begins by choosing stocks, based on their overall potential as a company. He looks at the company as a whole. Always seeks for businesses with earning potential and future growth prospects. Never concerned about the market and how it values the stock currently.

Click here for the target price.

PS

Don’t forget to leave your opinion in the reply form below. Your thoughts value me a lot and give a push-up to the future articles on stocks of your favorite choice.

Hameeda Ghori

Certified Financial Planner And Stock Analyst

7 thoughts on “RATTANINDIA INFRASTRUCTURE LTD. – WHY IT’S MY FAVOURITE PICK FOR YOUR SUCCESSFUL PORTFOLIO

  • May 24, 2017 at 11:25 AM
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    Currently no plant of R.Infra is operational. Once starts, my target is not a big deal. Recent Govt’s coal policy and subsidy to solar plants will make it possible.

  • May 23, 2017 at 11:53 PM
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    hi hameeda
    how sure u are of price target of 100 in 5 years for rattian wich is quoting at 3.5
    dr naeem

  • May 4, 2017 at 8:10 AM
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    Exceelent analysis and i want hold 10 k share of this company for long term

  • April 29, 2017 at 9:27 AM
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    Excellent analysis and i am holding 2 lakhs shares and interested to acquire more for long term

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