Reliance Home Finance Ltd. (RHFL) AI Stock Analysis

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Reliance Home Finance Ltd.

(NSE:RHFL)

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Rating:42Neutral

Price Target:INR 2.00▲(34.23% Upside)

Action:upgraded

Date:02/26/26

The overall score of 42 reflects severe financial distress, with negative equity and unsustainable operations being the primary drag. The stock is in a strong downtrend, oversold but with no clear reversal signals. Valuation appears cheap but is not supportive given the poor fundamentals.

Positive Factors

Secured housing finance focusRHFL's core focus on secured retail housing loans and loans-against-property means lending is collateralized by residential real estate. That structural product mix generally delivers higher recovery rates and more predictable loss given default versus unsecured products, supporting long-term portfolio resilience if underwriting stabilizes.

Negative Factors

Heavily leveraged balance sheetThe balance sheet shows negative equity and very high leverage, creating persistent solvency and regulatory capital risks for an HFC. High debt reliance raises funding vulnerability and refinancing needs, increases cost of funds, and constrains strategic options unless the company materially strengthens equity or reduces leverage over the medium term.

Reliance Home Finance Ltd. (RHFL) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 751.84M
Dividend Yield: ―
Average Volume (3M): 142.48K
Price to Earnings (P/E): 3.0
Beta (1Y): 0.42
Revenue Growth: ―
EPS Growth: ―
Country: India
Employees: 137
Sector: General
Sector Strength: 55
Industry: Financial - Mortgages

Reliance Home Finance Ltd. Business Overview & Revenue Model

Company Description

Operating within India's financial sector, Reliance Home Finance Limited specializes in providing housing-related financial services. Its comprehensive product portfolio includes various loan types such as residential mortgages, accessible housing fi...

How the Company Makes Money

RHFL primarily makes money through interest income earned on its loan portfolio. The company borrows funds (e.g., through bank borrowings and other debt/funding sources) and lends those funds to customers at higher interest rates; the spread between...

Reliance Home Finance Ltd. Financial Statement Overview

Summary

Severe financial distress: core operations deeply unprofitable (gross margin -415%, EBIT margin -1,852%), revenue down 64% YoY. Balance sheet shows negative equity of ₹530M and debt-to-equity -0.76, indicating solvency risk. Cash flow improved but remains weak. Overall, unsustainable financial position.

Income Statement

15Very Negative

Balance Sheet

5Very Negative

Cash Flow

30Negative

Financial statement breakdown
Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 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	-76.92B	-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	89.90M	-217.85M	41.03B	-5.98B	30.67B
Operating Cash Flow	0	89.90M	-217.85M	41.03B	-5.97B	30.68B
Investing Cash Flow	0	2.22M	6.35M	1.03B	8.48B	-15.60B
Financing Cash Flow	0	-91.67M	40.66M	-40.35B	-3.67B	-13.74B

Reliance Home Finance Ltd. Technical Analysis

Technical Analysis SentimentNeutral

Last Price1.49

Price Trends

50DMA1.57Negative

100DMA1.77Negative

200DMA2.08Negative

Market Momentum

MACD-0.04Negative

RSI54.45Neutral

STOCH83.85Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:RHFL, the sentiment is Neutral. The current price of 1.49 is above the 20-day moving average (MA) of 1.38, below the 50-day MA of 1.57, and below the 200-day MA of 2.08, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 54.45 is Neutral, neither overbought nor oversold. The STOCH value of 83.85 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:RHFL.

Reliance Home Finance Ltd. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:RHFL against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:CANFINHOME	72Outperform	INR 103.21B	9.19	―	1.89%	7.90%	25.13%
IN:LICHSGFIN	71Outperform	INR 310.59B	5.40	―	1.73%	-0.58%	6.78%
IN:REPCOHOME	70Outperform	INR 24.74B	4.96	―	2.57%	5.33%	7.15%
IN:GICHSGFIN	63Neutral	INR 7.06B	4.49	―	3.44%	0.64%	22.22%
IN:PNBHOUSING	58Neutral	INR 293.40B	12.59	―	0.70%	10.90%	9.13%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:RHFL	42Neutral	INR 688.08M	2.98	―	―	―	―

* General Sector Average

Performance Comparison

IN:RHFL and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:RHFL	Reliance Home Finance Ltd.	1.49	-1.86	-55.52%
IN:CANFINHOME	Can Fin Homes Ltd.	794.85	-81.81	-9.33%
IN:GICHSGFIN	GIC Housing Finance Limited	130.85	-36.99	-22.04%
IN:LICHSGFIN	LIC Housing Finance Ltd	577.05	17.30	3.09%
IN:PNBHOUSING	PNB Housing Finance Limited	1136.85	225.62	24.76%
IN:REPCOHOME	Repco Home Finance Ltd.	389.20	-24.09	-5.83%

Reliance Home Finance Ltd. Corporate Events

Reliance Home Finance Updates Exchanges on Seventh CoC Meeting Under CIRP

Mar 10, 2026

Reliance Home Finance Ltd., which is under Corporate Insolvency Resolution Process, has notified the stock exchanges that the seventh meeting of its Committee of Creditors was duly held on March 9, 2026. The meeting, conducted via video conferencing,...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Feb 26, 2026

Reliance Home Finance Ltd. AI Stock Analysis