Reliance retail does a Qtly EBITDA of 5800 cr vs 1000 cr for Avenue Supermart ( D-Mart )
Reliance retail’s EBITDA margins @ 7.5 vs 8 pc for Avenue Supermart ( basically – hardly any difference )
D-Mart commands a Mkt cap of 2.4 lakh cr
What should be the Mkt cap of Reliance retail ???
IMO – Minimum – North of 11-12 Lakh cr
Jio Platforms Does an EBITDA of 13500 cr for Q2. Airtel’s Q2 EBITDA is expected to be around 20000 cr
EBITDA margins for both are in a similar band – ie – 50-52 pc
Airtel’s Mkt cap is 3.5 lakh cr. Jim Platforms should command a Mkt cap of > 2 lakh cr
That makes it a total Mkt cap of > 14 lakh cr for these two businesses alone
The cash cow of O2C ( refining business ), Oil and Gas business ( which produced an EBITDA of 21000 cr in Q2 ) are being valued at 1.5 lakh cr by the Mkt ( RIL’s total Mkt cap is 15.5 lakh cr ) – That’s peanuts !!!
This looks like a huge anomaly to me !!!
Disc: holding, biased
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