Reliance Capital

Reliance Capital to treble lending to SMEs, consumers to Rs 50,000 crore

Reliance Capital on Friday said it will treble its lending book towards small and medium enterprises as well as consumer finance to Rs 50,000 crore in the next three years.

In a layout of company's growth strategy for the next three years in a analyst concall, Reliance Capital said it also aims to expand the housing finance asset under management (AUM) to Rs 50,000 crore in three years.

The company said it will leverage technology and digital platform in a big manner for an accelerated growth in lending business and simultaneously focus on under-served tier 2 and 3 towns and cities for achieving targeted growth in the lending business.

"Reliance Capital is going to unlock significant value by listing three subsidiaries -- AMC, General Insurance and Housing Finance in the current financial year," RCap CFO Amit Bapna said.

Company CEO Ashish Vohra said, "Clear turnaround has been achieved in the operations in Q1 2017-18. There is a sharp improvement across all key performance indicators including new business and persistency."

"We also plan to expand our distribution network through merger and acquisition opportunities with PSU banks owned life companies," Vohra added.

The company reported a 15 per cent rise in consolidated net profit at Rs 238 crore in the first quarter ended June 30, 2017 against Rs 207 crore a year ago.

https://www.zeebiz.com/companies/ne...ing-to-smes-consumers-to-rs-50000-crore-19950

 

This is very imp news

 

Re Capital is at Fresh 52 week high.

 

I dont have figures but I think present market cap of Aditya Birla Capital is higher than Rel Capital ,either Aditya Birla Capital is over priced or Rel Capital is grossly Underpriced .No doubt Aditya Birla Capital is good company and can be added on corrections but its listing at higher levels may speed up Rel Capital upper Journey .L&T Fin holding also look good for long term.No recommendation but only view for discussion.

 

I agree with you Kharb on the Reliance Capital and L&T Finance.....I hold L&T Finance now for very long term....Entered Reliance Capital recently and it is undervalued....lot of value unlocking left.

 

Reliance Capital demerger today.....still Reliance Capital is strong and rocking today. Lot of value unlocking left.

 

Rel Capital is down 69 rupess to adjust for Rel Home Fin demerger.But dont be misguided that Rel home fin will list around 69,in my view stock should list substantially higher then this adjustment. So Rel Capital share holder will gain substantially at the time of listing of Rel Home Fin.

 

down 69/- today and can you also throw some light on how much did it fall yesterday i.e. 4th september

 

Reliance Home Finance will list between 86 to 114 which is PE of 3 to 4.5. Let's see in the coming days.

 

Sorry it is P/B value of 3 to 4 and not P/E value....it is a typo in my previous post.

 

Yes heard this on CNBC the other day. View expressed by an analyst from Investec Capital Services

 

Reduced Rel Capital by selling 40% of my holding in Rel Capital
to reduce residual holding cost to negligible .

 

One query? If Rel Cap is your full conviction pick, then why reduce exposure? Other veterans like you increase exposure in similar situation.Why deploy money elsewhere if conviction level in the present scrip is intact?

 

Recently lot of more new companies in financial sector has been listed (Aditya Birla Capital) and some insurance companies are in process of IPO and may be listed soon.My portfolio is already skewed towards financial sector .If I have to participate in new companies which are over priced as of now but are long term secular stories of this sector then I have to rebalance with in financial sector .

 

@kharb
Strange strategy........ Exiting out of a long term secular GROWTH AND UNDERVALUED to buy currently OVERVALUED but long term secular stocks

Can you throw in some rationale into this strategy of yours

@shakti khanduri

Many a times my questions are conveniently ignored by the addressees. You are most welcome to enlighten me about your understanding.

 

Reliance Home Finance got listed at 109 and locked in UC. Cheers to all. Patience paid in Reliance Capital. And still lot to come in this one.

 

How can it list at 109/- and be locked in UC when latest price is also 109/-?

 

Read this article: https://www.moneycontrol.com/news/b...-upper-circuit-opens-at-rs-107-2-2394571.html

 

Oh thank you for this link.

It firstly clarifies that Reliance Home did not list at 109/- that you mention.

Secondly if at 109.2/- it's locked at 5% UC, this suggests a listing price of a 104/-.

 

@kharb

Just FYI. This is your post of 21 september