- CMP: 1161
- Market Cap: 28,531crs
Reliance Capital, is the financial services arm of Anil Dhirubhai Ambani Group (ADAG), has witnessed a spectacular run on the bourses, almost doubling over the past year. In the past month, it has gone up 36 per cent. Investors are flocking to the Reliance Capital counter, taking cue from the company’s big bang expansion plans, its growing leadership position in existing businesses within a short period of time and buy recommendation by various foreign and domestic brokerage firms due to attractive valuation and future potential. After touching its all-time high of Rs 1046 on May 22, the stock seems to have consolidated at around Rs 950-980 levels and currently everyday hitting 52 weeks high of Rs.1161. Reliance Capital is one of the leading and fastest growing private sector financial services company. It is the largest asset management co in India. It also offers life insurance and general insurance products through its subsidiaries. It has sizable private equity and proprietary investments. It recently commenced its stock broking business and will soon start consumer finance and asset recovery business.
Asset Management:
Reliance Mutual Fund has total Assets under Management (AUM) of Rs.59, 143.47crs as on 30th May, 2007. PMS AUM at end of FY07 - Rs.30bn Offshore Fund - Current AUM US $125mn Reliance Mutual Fund, the country’s largest fund house, is embarking on an expansion plan to double its branch network from the existing 300 in the next nine months.
Insurance: Its insurance premium income of Rs 1,000 crore in FY07 to grow four-five times in next two years and the market share to be 10 per cent from the current 4.5 per cent. The gross written premium of its general insurance of about Rs 900 crore is expected to double each year between FY07 and FY09. Reliance Money, which was launched in April 2007, is already doing good business with a daily turnover of over Rs 400 crore.
General Insurance
Pre-tax profit of Rs.224mn in FY07.It has approx.45mn retail customers including 35mn customers of RCOM and 5mn customers of REL. Retail business: 55%.Corporate business: 45%
Life Insurance
Gross Premium for FY07- Rs.10bn
Broking:
Reliance Money has 75,000 customers and more than Rs.500crs daily turnover happening. It has captured 1% of the total market share. It also distributes life and general insurance products, mutual fund distribution, maketing of credit cards. Only 4.9% of household savings invested in equity/equity related assets. Reliance Money is aggressive. They have opened 2270 outlets in a short period when compared to >640 of India bulls, >813 of Kotak, 615 of Share khan.
Investments in listed and unlisted companies:
- Ad labs Films 12, 55,000 shares by way of Rel Cap and 20600000 shares by Rel Land Pvt.Ltd.
- Global Broadcast News 16, 75,000 shares (6.27% stake)
- Inox Leisure 3, 34,000 shares at Rs.125.52
- Kinetic Engineering 7, 15,000 shares (14.13% stake)
- Maxwell Inds 91, 77,215 shares (14.55% stake)
- Network18 Fin Cap 16, 42,000 shares (5% stake)
- Prime Focus 15, 00,000 shares (11.79% stake)
- RCOM 1, 78, 27,158 shares
- Reliance Energy 5.79% stakes was transferred to a group co. By this deal, they booked profits of about Rs.350crs.
- RIL 1, 34, 60,295 shares
- RNRL 1, 64, 93,158 shares (1.35%)
- Spanco Tele 35, 50,000 shares (14.96%)
- TV Today 11.9% stake
- Unrealized gains of Rs.27.2 bn (consolidated) on listed investments as on March 31, 2007 (Remember, this is inclusive of REL).
- Unlisted companies include yatra.com, 44% stake in DTDC, 31% stake in BLR India, and many others.
- Consumer finance and Asset Reconstruction business is yet to launch. Every subsidiary is 100% owned.
Future Plans:
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