Reliance Home Finance Ltd. (RHFL) AI Stock Analysis

• Market Cap: ₹1.04B
• Dividend Yield: N/A
• Average Volume (3M): 484.28K
• Price to Earnings (P/E): 4.3
• Beta (1Y): 1.28
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 43 Neutral
• Price Target: ₹2.00 ▼(-30.80% Downside)
• Action: Reiterated Date: 02/26/26
• Date: Action: Reiterated 02/26/26

The score is constrained primarily by weak financial health (negative margins, negative equity/high leverage, and inconsistent cash flows). Technicals also remain bearish with the stock below key moving averages and negative MACD, despite oversold momentum readings. Valuation appears low on P/E, but it does not outweigh the fundamental risk signals.

Positive Factors

Focused mortgage lending franchise

A narrow, mortgage-focused business model creates durable, repeatable net interest income streams tied to home loans and loans against property. Specialization supports product expertise, underwriting consistency and customer relationships that underpin long-term loan book stability if credit is managed.

Capacity for rapid revenue scaling

A >1000% reported revenue increase shows the company can materially grow originations and interest income from a low base. Demonstrated ability to scale the lending book can unlock operating leverage in NII generation and improve fixed-cost absorption over the medium term if credit quality and funding are controlled.

Episodes of positive operating cash flow

Recorded periods of positive operating cash flow indicate the core lending business can generate internal cash to service debt and fund lending. This inherent cash-generative capability is a durable strength if management stabilizes collections and reduces volatility in cash conversion.

Negative Factors

Heavily leveraged balance sheet

Negative equity and very high leverage materially increase refinancing and solvency risk for a regulated housing finance firm. Elevated debt dependence raises interest expense, limits capital flexibility, and constrains the firm's ability to grow the loan book or absorb losses over the medium term without fresh capital or deleveraging.

Negative gross and net margins

Negative margins signal that lending yields and fee income are insufficient to cover funding and operating costs after credit charges. Persistent margin weakness erodes retained earnings, limits reinvestment and heightens reliance on external funding, undermining sustainable profitability absent structural improvement.

Inconsistent cash generation and negative FCF periods

Large swings and episodes of negative free cash flow weaken liquidity and increase dependence on capital markets. For a lender this raises funding cost and timing risk, constrains provisioning capacity and loan growth, and creates a persistent structural constraint on executing a stable medium-term business plan.

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

Financial statements indicate very high risk: volatile revenue, negative gross and net margins, a heavily leveraged balance sheet with negative equity, and inconsistent cash generation with periods of negative free cash flow.

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

Reliance Home Finance Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.89
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

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 2.89 is above the 20-day moving average (MA) of 2.59, above the 50-day MA of 2.76, and below the 200-day MA of 4.10, indicating a bearish trend. The MACD of -0.17 indicates Positive momentum. The RSI at 18.82 is Positive, neither overbought nor oversold. The STOCH value of 7.07 is Positive, 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	₹112.69B	11.57	―	1.37%	8.92%	12.32%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
AADHARHFC	64 Neutral	₹199.70B	19.32	―	―	―	―
REPCOHOME	62 Neutral	₹23.70B	5.14	―	1.61%	8.10%	2.97%
BAJAJHFL	56 Neutral	₹725.16B	29.26	―	―	―	―
LICHSGFIN	55 Neutral	₹295.69B	5.39	―	1.87%	4.79%	13.08%
RHFL	43 Neutral	₹1.04B	4.26	―	―	1057.49%	―

Reliance Home Finance Ltd. Corporate Events

Reliance Home Finance Updates Exchanges on Rescheduled Creditors’ Meeting Under CIRP

Reliance Home Finance Limited has notified the exchanges that its fifth Committee of Creditors meeting, held as part of its ongoing Corporate Insolvency Resolution Process, was rescheduled from 7 January 2026 to 8 January 2026 and conducted via video conferencing. The post-facto disclosure, made under SEBI listing regulations, underscores the formal progress of the insolvency proceedings and continued engagement of creditors in determining the company’s resolution path, a process closely watched by investors, lenders and other stakeholders given the firm’s financial distress and restructuring prospects.

Reliance Home Finance Reschedules Fifth CoC Meeting Amid Ongoing Insolvency Process

Reliance Home Finance Ltd., which has been under Corporate Insolvency Resolution Process since September 2025, has informed the stock exchanges that its fifth meeting of the Committee of Creditors has been rescheduled. Originally slated for the afternoon of 7 January 2026 via video conferencing, the CoC meeting will now be held on 8 January 2026 at 11:30 a.m. IST through the same virtual mode, as per an intimation filed by resolution professional Umesh Balaram Sonkar. The rescheduling is part of ongoing procedural steps in the insolvency process, on which the company has said it will continue to keep stakeholders updated.