Reliance Home Finance Ltd. (RHFL) AI Stock Analysis

• Market Cap: ₹1.43B
• Dividend Yield: N/A
• Average Volume (3M): 484.28K
• Price to Earnings (P/E): 6.1
• Beta (1Y): 1.21
• Revenue Growth: 1057.49%
• EPS Growth: N/A
• Country: IN
• Employees: 137
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Mortgages
• EPS (TTM): N/A
• Shares Outstanding: 484,565,600
• 10 Day Avg. Volume: 347,177
• 30 Day Avg. Volume: 484,283
• PEG Ratio: >-0.01
• Price to Book (P/B): -2.89
• Price to Sales (P/S): 689.16
• P/FCF Ratio: 17.06
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 42 Neutral
• Price Target: ₹3.00 ▼(-2.60% Downside)

The overall stock score is primarily impacted by the company's poor financial performance, characterized by volatile revenue, negative profit margins, and a heavily leveraged balance sheet. Technical indicators further suggest a bearish market sentiment. While the stock appears undervalued based on its P/E ratio, the lack of a dividend yield and financial instability present significant risks.

Positive Factors

Revenue Growth

The company has demonstrated significant revenue growth, indicating a strong demand for its financial products and services, which could lead to improved market position and financial stability over the medium term.

Business Model

Reliance Home Finance's business model of generating revenue through interest income and fees is sustainable, as it leverages ongoing demand for housing finance, providing a stable revenue stream.

Market Position

As a prominent player in the Indian financial services sector, RHFL's established market position in housing finance supports long-term growth prospects and competitive advantage.

Negative Factors

Financial Instability

The company's financial instability, marked by volatile revenue and negative profit margins, poses a risk to its ability to sustain operations and achieve profitability in the long term.

High Leverage

The high leverage and negative equity position increase financial risk, limiting the company's ability to invest in growth opportunities and manage economic downturns effectively.

Cash Flow Concerns

Inconsistent cash flows and negative free cash flow in certain periods raise concerns about the company's ability to generate sufficient cash to support operations and service debt.

Reliance Home Finance Ltd. Business Overview & Revenue Model

Company Description

Reliance Home Finance Limited engages in the housing finance business in India. The company offers a range of loans, such as home and affordable housing loans, loans against properties, and construction finance loans. It also provides property services. The company was incorporated in 2008 and is based in Mumbai, India. Reliance Home Finance Limited is owned by Reliance Capital Limited.

How the Company Makes Money

Reliance Home Finance Ltd. generates revenue primarily through the interest income earned on the home loans and other financing products it provides to customers. The company's revenue model is built on lending, where it charges interest on the loans disbursed to clients. In addition to interest income, RHFL may also earn fees from processing loan applications and other ancillary services. Key revenue streams include home loans, loan against property, and mortgage financing. The company may benefit from partnerships with real estate developers, which can provide a steady flow of customers seeking financing options for purchasing properties. Additionally, RHFL may engage in securitization of its loan portfolio, allowing it to raise funds and enhance liquidity, thereby contributing to its overall profitability.

Reliance Home Finance Ltd. Financial Statement Overview

Summary

Reliance Home Finance Ltd. is facing significant financial challenges. The company's volatile revenue and negative profit margins, coupled with a heavily leveraged balance sheet and inconsistent cash flows, indicate financial instability. These issues suggest a high-risk profile and potential difficulties in sustaining operations.

Income Statement

The company has experienced significant volatility in revenue and profitability, with recent periods showing drastic declines in revenue and negative gross and net profit margins. These negative margins indicate substantial operational inefficiencies and challenges in generating revenue.

Balance Sheet

The balance sheet reveals a heavily leveraged position, with a negative stockholders' equity indicating significant financial risk. The debt-to-equity ratio is extremely high, reflecting the company's reliance on debt financing. The equity ratio is negative, further highlighting financial instability.

Cash Flow

The cash flow statement shows mixed results, with periods of positive operating cash flows. However, the overall trend is concerning due to large fluctuations and negative free cash flow in some years. The company's ability to generate consistent cash flow is in question.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.23M	2.23M	6.18M	3.82B	2.87B	7.75B
Gross Profit	-9.24M	-9.24M	-34.93M	3.37B	-9.11B	-4.66B
EBITDA	-41.23M	-41.23M	-38.09M	2.32B	-79.02B	-22.79B
Net Income	241.74M	241.73M	-35.49M	54.19B	-54.40B	-15.20B
Balance Sheet
Total Assets	15.82M	15.82M	298.25M	348.50M	101.44B	148.98B
Cash, Cash Equivalents and Short-Term Investments	7.13M	7.13M	121.52M	175.40M	26.28B	9.74B
Total Debt	402.75M	402.75M	914.13M	9.50M	119.17B	121.80B
Total Liabilities	545.90M	545.90M	1.07B	1.09B	156.37B	149.51B
Stockholders Equity	-530.08M	-530.08M	-771.81M	-738.30M	-54.92B	-529.60M
Cash Flow
Free Cash Flow	0.00	89.90M	-217.85M	41.03B	-5.98B	30.67B
Operating Cash Flow	0.00	89.90M	-217.85M	41.03B	-5.97B	30.68B
Investing Cash Flow	0.00	2.22M	6.35M	1.03B	8.48B	-15.60B
Financing Cash Flow	0.00	-91.67M	40.66M	-40.35B	-3.67B	-13.74B

Reliance Home Finance Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.08
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:RHFL, the sentiment is Negative. The current price of 3.08 is above the 20-day moving average (MA) of 3.07, below the 50-day MA of 3.32, and below the 200-day MA of 4.23, indicating a neutral trend. The MACD of -0.10 indicates Negative momentum. The RSI at 46.25 is Neutral, neither overbought nor oversold. The STOCH value of 53.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:RHFL.

Reliance Home Finance Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CANFINHOME	73 Outperform	₹125.38B	13.43	―	1.37%	8.92%	12.32%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
AADHARHFC	64 Neutral	₹212.14B	21.00	―	―	―	―
REPCOHOME	62 Neutral	₹24.60B	5.52	―	1.61%	8.10%	2.97%
BAJAJHFL	56 Neutral	₹799.07B	33.82	―	―	―	―
LICHSGFIN	55 Neutral	₹293.57B	5.32	―	1.87%	4.79%	13.08%
RHFL	42 Neutral	₹1.43B	6.13	―	―	1057.49%	―