A recent Macquarie report sees about 30% potential downside to RIL, with a price target of about Rs 1350 due to fall in core EPS.
Another cautious view on current RIL valuation… very prudent view.
Reliance profit in its results were affected significantly by inventory reduction to the tune of 8900 crores in this quarter. not well explained.
Anyone has valid explanation?
Nice capital allocation. After ITC has learnt from its mistake after 20 years, RIL is trying its luck in hotels and that too international.
I think the subway acquisition if materializes, it will be another strength to strength move for reliance. They may probably look at the model similar to having mcds on walmart stores in us and expand the subway brand in their brand outlets.
Dis: entered a tracking position today.
Can qualified ppl answer a few pessimistic doubts of mine ?
- The Aaramco deal as it pans out is an all-stock deal. Would this have any material impact on the stock ? The balance sheet might be strengthened but there’s unlikely any new cash to spend of the renewables business.
- With this 20% sale, Aaramco can launch O2C IPO as an OFS in which Reliance Industries shareholders would get nothing, is that right ?
- Would the Reliance Industries share holders benefit at all from IPOs of O2C, Jio and Retail (whenever they happen)?
- If the Reliance shareholders aren’t going to get anything in the subsidiaries then is it worth holding this stock ? Reliance industries would always have ‘Holding Company’ discount and this stock may not go anywhere, am I correct ?
What is Reliance trying to do. Run every possible industry in India. It’s one of India’s biggest company but such aggressiveness has rarely resulted in good outcomes.
Reliance might be trying to do a TATA . But these moves will only be successful if the individual stories become cash cows and don’t degrade margins.
Of course, being an Indian investor gives me the advantage of growing with the country by owning a MNC spearheading this race but it also grows in complexity with each investment( most of which were dying stories and are in hope of revival).
The aforesaid investment is part of group’s digital health initiatives, to foster affordable access to
world class technology and innovation led healthcare ecosystem in India.
Strand was incorporated in India on October 6, 2000. Strand is a pioneer of genomic testing in India
with bioinformatics software and clinical research solutions to healthcare providers including
clinicians, hospitals, medical devices manufacturers and pharmaceutical companies.
JD, Subway, Strand and how many more ? Will just degrade margins and require so much attention to turn around these if they can.
Disc: Heavily invested
Ridiculous indeed. Mukesh Ambani is trying to secure his family fortune by diversifying however at the cost of retail investors.
Disc: Heavily invested as well
Total capital deployed here is miniscule in the context of RIL. Genomic testing and medical diagnostics is a sunrise sector, at an inflection point in India and globally, much like solar energy. I don’t mind this kind of diversification at all actually - not much to lose and a massive opportunity to gain. Remember Reliance also runs some hospitals so a foray into medical devices is not too tangential.
Invested. Have trimmed a bit over the past couple of days.