Agree, however feel that if the company is not able to monetise the investments to a significant degree (10000 crs would be nice ) we may have to hold this one for a longish time to see meaningful returns…
Hopefully investors like us are able to really question mgmt. hard on this point forcing them to give out much more info about these prop investments (especially the 6250 crs invested in CCD)
Decent Q-4 numbers from reliance Nippon. Stock is trading at just Rs. 14 premium to IPO issue price. Interestingly IPO was oversubscribed 81 times despite of medium size(about 1,500 crores).
the last acquisition by ADAG for foraying in to full fledged defence conglomorate also seems to be proving disaster .
poor capital allocation by ADAG group everytime is a very negative point .you dont learn from your past mistakes .
Reliance Naval’s unit at Pipavav is totally closed down since last 15 days. Contractors are agitating for non payment of dues and are not allowing any one to enter the premises. Situation is grim
I am very satisfied with the results. Investment disposal is taking more time as many are unlisted and these deals take a longer time. But, I think in current year, we should see good progress.
Also, it’s good that they have no exposure to Reliance Naval.
Latest update: RCom settles Ericsson dues, asset sales to Reliance Jio gets NCLAT nod
The NCLAT also halted bankruptcy proceedings ordered two weeks ago against debt-laden Reliance Communications
Jiten Sir,
The way news flow is most of the subsidiaries viz. reliance geneal insurance, life insurance will come with IPO and mainly reliance commercial finance under devang mody may remain as main business. But holding cos. are ascribed a huge discount as much as 50-70%. As SOTP valuations shows it is very cheap currently but if it becomes holding co. then is market justified. your valuable views please
For a company with net profit of 1000 Cr each for last 5-7 years, the same is trading at 2300 Cr M Cap today! Ofcourse the catch is that there is a very high debt outstanding of 35000 Cr or so and interest coverage ratio is less than 2.
Every few days, the shares of promoter get invoked here and get sold in open market.
Ideally, the promoter should start exiting some of these businesses or something like Reliance Home Finance. Given his poor reputation, he can’t stand to run these companies…the longer he stays…the faster is the erosion