Reliance Capital

Discussion in 'Ask A Query About Your Stock Picks And Portfolio' started by kharb, Apr 22, 2016.

  1. kharb

    kharb Well-Known Member

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    Now a days It is very difficult to find a NBFC which has good large business under its belt ,Foreign stakes of reputed Japanese Nippon and Sumitumo ,but still quoting below book value. I assume that FII might have done proper research before paying heavy premium for their stakes.How long it can suffer due to past mistakes of misadventures in unrelated business.I assume company is now coming out of all unrelated activities and must be focusing on core Finince business.I am expecting stock to perform in medium and long run.This is my personal view for further discussion in form and is not recommendation.
     
  2. dineshkapoor27

    dineshkapoor27 Active Member

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    I dont know about Reliance companies now. They are just so crappy in their customer service (I've borne the brunt of being a customer of reliance communications, ugh!). Heavy debt laden and just too much focus on extracting money out of customers with crappy service. Max, Bajaj are much better in terms of customer service and I trust them more in terms of their ethics and corporate governance. Just my thought about reliance B2C services.
     
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  3. kharb

    kharb Well-Known Member

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    We are not discussing Reliance Communication of which you had experince of bad service.That is different company ,as RIL group initially missed telecommunication business bus but entered through Wrong CDMA technology. Reliance Capital is NBFC having business Intrest in Rel mutual fund,Relince life insurance ,Reliance General Insurance and Relince commercial finance which includes Housing and SME financing. It has ventured into unrelated business and lost focus.Now it is coming out of all unrelated Business and focusing on core NBFC businesz.So may outperform.
     
  4. darth

    darth Active Member

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    Outperform what? The index? Then there are other already solid scrips which are likely to outperform the index.

    Is it likely to be an outperformer in the NBFC pack?
     
  5. kharb

    kharb Well-Known Member

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    Please write your other solid scrips which you think will outperform index in long term upto 5 to 10 years.I am always interested. To me any stock which can give NIFTY plus 5% CAGR or more are always worth looking.
     
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  6. darth

    darth Active Member

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    You asking a wrong person for I dont look beyond a rolling 15-18 months..

    Coming back to Reliance Capital - by the tone of message so i presume that the outperformance is vis a vis the index
     
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  7. w4wealth

    w4wealth Well-Known Member

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    sure. rel cap will outperform index in 5 years.
     
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  8. dineshkapoor27

    dineshkapoor27 Active Member

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    @kharb sir what I respectfully wanted to say that I am not very bullish on the Reliance ADAG group especially because they are poor in customer experience. Of course, that will cover Reliance Capital as well. Their major work is in B2C like mutual funds, loans, insurance, wealth management etc. and my limited point was that I am not very happy with their service and ethics towards their customers (at the group level), so therefore I am not bullish on it personally. I am reluctant to invest in any company in B2C business which, I feel, may not be great in serving their customers and harassing them. I've had better experience of customer service with Max and Bajaj. Of course, I may be wrong, but at least I am entitled to my opinion :).
     
  9. dineshkapoor27

    dineshkapoor27 Active Member

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    I personally like the Microfinance space. It has a lot of scope to grow, I feel. Equitas IPO has done really well. They are planning on applying for a small banking license as well. Ujjivan IPO should be interesting. Who knows, in the future, some big NBFC may buy out these smaller fishes and consolidate. SKS microfinance has already given good returns. Some food for thought.
     
  10. darth

    darth Active Member

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    True about the untapped market. But a repeat of Andhra is the lurking fear. The poll campaigns reflect a disturbing trend of appeasement. Banning liquour, tobacco. It needs just one regional party to announce waiver and we will have this on the manifesto of numerous regional parties.
     
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  11. dineshkapoor27

    dineshkapoor27 Active Member

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    Agreed. Thats one of the risk that can catch on to other states as well. These microfinance guys charge a heck of a lot of interest (25% if I am not wrong). There have been some studies which show that the net impact in terms of improvement of people's lives have not been great because of Microfinance. I can't confirm the veracity or the bias in the studies though. Still I feel that things may become easier with the change of govt. or some other regulatory action (ruling by HC, SC etc.) Anyways, India is a pretty big country to grow in with 70% people living in rural areas and probably need these financial assistance.
     
  12. kharb

    kharb Well-Known Member

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    Relince Capital has again started moving.As with proposed listing of insurance arm of HDFC ,all such Compnies may be rerated.
     
    Last edited: Jun 3, 2016
  13. kharb

    kharb Well-Known Member

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    Smart move by Relince Capital,grossly under priced NBFC stock with good large scale business.Sumitumo and Nippon life ,both Japanese big investers have stake.Company having insurance and large mutual fund business in addition to other NBFC portfolio, now it seems is turn of Relince Capital to perform.Price to book is just 0.8,many similar NBFC are quoting at Price to book more than 3 ,so look at under valuations
     
    Last edited: Jul 26, 2016
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  14. Ajayyan

    Ajayyan New Member

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    Getting exposure to the entire Reliance group is worse than buying share of any AKRI Busienss (Cleaning or Scrap picking company) Rel Gio will not do any wonder for share holders
     
  15. w4wealth

    w4wealth Well-Known Member

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    what will you suggest to do?
     
  16. kharb

    kharb Well-Known Member

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    Reliance Capital, which is still attractively priced in over heated NBFC space has finally started to move upward.
     
  17. Antima Singh

    Antima Singh New Member

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    Reliance Capital advances as its Q1 net jumps 22%, Seems to give much good results in long run
     
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  18. kharb

    kharb Well-Known Member

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    Reliance Capital is now trading at new 52 week high 472 RS, still the cheapest stock in NBFC space, still trading below book value having life insurance, general insurance, commercial finance, AMC mutual fund business, broking business etc under its belt having investment from Sumitumo and Nippon of Japan in business.
     
  19. RAMA MURTHY SASTRY CHALLA

    RAMA MURTHY SASTRY CHALLA Well-Known Member

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    yes valuations are attractive comparatively other NBFC s , main cause is group performance is not attractive
    so stock is moving slowly ...but individually company is good
     
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  20. kharb

    kharb Well-Known Member

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    Added more quantity of Rel capital as Mr. Anmol Ambani son of Anil Ambani is inducted as additional director. He is Warwick University graduate and has been trained in Rel AMC. In my view company is ready for big take off and what a strategy to give credit to MR ANMOL AMBANI. INDEED A GOOD LAUNCH , A New SON Rise in Reliance Family. Wishing him, a good luck . To beat Bajaj Finance in market cap is the requirement of small share holders like me, indeed a big task for young Ambani , but his blood line may make it possible.
     
    Last edited: Aug 24, 2016
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