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basant
Admin Group
Joined: 01/Jan/2006
Location: India
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Posts: 18403
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   Posted: 05/Jun/2007 at 10:34pm |
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These are Reliance capital holdings distinct from the AMC.
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kulman
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Joined: 02/Sep/2006
Location: India
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Posts: 9319
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Posted: 05/Jun/2007 at 10:50pm |
Devesh, you've omitted PrimeFocus whose latest holding shows some very interesting names. How could you miss this from your most fav sector?
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Sr. No. |
Name of the shareholder |
No. of shares |
Shares as a % of total number of shares |
| 1 |
Jhunjhunwala Rakesh Radheshyam |
250000 |
1.97 |
| 2 |
Jhunjhunwala Rekha Rakesh |
632500 |
4.97 |
| 3 |
Prudential ICICI Trust Ltd - Emerging ST |
189590 |
1.49 |
| 4 |
ICG Q Ltd |
784576 |
6.17 |
| 5 |
Reliance Capital Ltd |
1500000 |
11.79 |
| 6 |
Adlabs Films Ltd |
482000 |
3.79 |
| 7 |
Matterhorn Ventures |
260594 |
2.05 |
| 8 |
Manmohan Shetty |
320000 |
2.52 |
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Total |
4419260 |
34.74 |
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Life can only be understood backwards—but it must be lived forwards
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kanagala
Senior Member
Joined: 31/Mar/2007
Location: India
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Posts: 1229
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Posted: 05/Jun/2007 at 4:43am |
Originally posted by kulman
Devesh, you've omitted PrimeFocus whose latest holding shows some very interesting names. How could you miss this from your most fav sector?
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Hi Kulman Ji, What is your opinion on prime focus. I am thinking of taking small exposure. Future looks very promising for this.
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deveshkayal
Senior Member
Joined: 04/Sep/2006
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Posts: 3903
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Posted: 05/Jun/2007 at 10:07am |
Originally posted by kulman
Devesh, you've omitted PrimeFocus whose latest holding shows some very interesting names. How could you miss this from your most fav sector?
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I thought Sonata Investments might be holding stake in Prime Focus. Thanks for pointing out. Marathon Ambani has stakes in most of the media companies.I think he has some stake in Balaji Telefilms also!
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"You don't need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beat the guy with a 130 IQ. Rationality is essential"- Warren Buffett
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Rinku
Senior Member
Joined: 06/Apr/2007
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Posts: 313
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Posted: 07/Jun/2007 at 3:33am |
| Long term capital gain |
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| POUND WISE |
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| Priya Kansara / Mumbai June 4, 2007 |
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| Investors should have a three-year perspective in Reliance Capital as the benefits of its expansion will be reflected in phases. |
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| Reliance Capital, the financial services arm of Anil Dhirubhai Ambani Group (ADAG), has witnessed a spectacular run on the bourses, almost doubling over the past year. |
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| 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. |
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| After touching its all-time high of Rs 1046 on May 22 , the stock seems to have consolidated at around Rs 950-980 levels. |
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| Analysts advise investors to accumulate the stock at about Rs 850-900 levels as it has appreciated too fast. But they don’t deny that there are many triggers for the stock that could occur over the next two years. |
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Fast growing businesses
Reliance Capital has presence in some of the fastest growing segments of financial services like asset management, life insurance and general insurance through more than 2,700 outlets of the group. It is further slated to expand its product base. |
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| It recently set up its retail broking arm ‘Reliance Money’ and plans to start its consumer finance business in this fiscal year. The company has also applied to the Reserve Bank of India for its entry into asset reconstruction business and is awaiting approval. |
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The factors that are driving up the stock price are: phenomenal growth in all its existing businesses in a short span of time, huge unrealised gains arising from its investment portfolio, consolidation of its existing business and expected growth of new businesses in the coming years.
| HIGH VALUE BUSINESSES |
| Rs crore |
FY08E |
FY09E |
| Asset management |
3022 |
3345 |
| General insurance |
1417 |
2433 |
| Life Insurance |
9238 |
10633 |
| Consumer Finance |
940 |
1840 |
| Broking |
462 |
1036 |
| Value of infrastructure and leasing |
3952 |
2659 |
| Value of Investment |
3447 |
3447 |
| Total Value |
22479 |
25393 |
| Value per share (Rs) |
914 |
1033 |
| Source: Edelweiss Securities | |
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| Reliance Mutual Fund is today the largest Indian asset management company with a corpus of over Rs 48,000 crore (which witnessed a growth of about 85 per cent year on year as on April 2007). |
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| Similarly, the company is at the fifth position in life insurance despite a late start and the fourth largest general insurer with a market share of 8-9 per cent among the private players. The company has outperformed the market in each of the above businesses. |
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| Says Amitabh Chaturvedi, president-group businesses, Reliance Capital, “We endeavour to be among the top three players in each of our businesses, and also create one of the largest distribution networks for financial products and services in India.” |
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| Analysts say that the future growth of its insurance, broking and consumer finance businesses can be staggering. They peg 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. |
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| Similarly, 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. |
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The under-penetration of financial services in India provides strong revenue visibility for the company. Thus, its revenues are expected to grow at a whopping 77 per cent CAGR between FY07 and FY09.
| VOLUME BOOST |
| Rs crore |
FY05 |
FY06 |
FY07 |
FY08E |
FY09E |
CAGR (%) |
| FY07-09 |
FY05-07 |
| Total income |
477.50 |
467.30 |
2161.00 |
3599.50 |
6617.50 |
76.80 |
112.74 |
| EBITDA |
158.00 |
644.00 |
871.00 |
1066.50 |
1409.50 |
27.40 |
134.79 |
| Net profit |
120.50 |
583.00 |
703.00 |
716.00 |
747.00 |
3.10 |
141.54 |
| Source: Brokerage reports | |
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| According to the company, there is no dearth of capital for fuelling such growth as its net worth of Rs 5,000 crore far exceeds its capital requirement of Rs 2,000 crore over the next two-three years. |
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| The company is also sitting on unrealised gains of Rs 3,000 crore (or Rs 130 per share), after its recent sale of Reliance Energy shares at a profit of Rs 350 crore. |
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| But analysts say that margin expansion is expected to lag revenue growth due to concentration on higher volumes, higher operating expenses as this businesses are in an expansion phase and lower income in the initial stages of the insurance business. |
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| Thus, according to analysts’ estimates the company’s operating profit and net profit is expected to grow at a modest annualised rate of 27 per cent and 3 per cent between FY07 and FY09. |
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| However assures Chaturvedi, “We will endeavour an adequate balance of growth and profitability.” |
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Valuation
Based on the average of sum-of-parts valuation of Reliance Capital by broking firms, the company’s fair value works out to around Rs 1086 per share, based on FY09 estimates. |
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| Most of the future valuation is likely to come from its insurance business (around Rs 550 per share), broking (about Rs 90 per share) and the balance from unrealised gains, asset management and consumer finance businesses. |
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| At the current market price of Rs 971, the short-term upside seems limited. But long-term investors are advised to accumulate the stock and hold at least for two-three years to benefit from the full growth potential of businesses, which are at a nascent stage. |
Business standard
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vivekkumar_in
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Joined: 19/Sep/2006
Location: United States
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Posts: 606
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Posted: 08/Jun/2007 at 10:11pm |
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Is Reliance Capital a candidate for demerger at some point ?
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Often we forget there's a company behind every stock,and there's only one reason why stocks go up. Companies go from doing poorly to doing well or small companies grow to large companies.
P Lynch
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deveshkayal
Senior Member
Joined: 04/Sep/2006
Online Status: Offline
Posts: 3903
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Posted: 08/Jun/2007 at 10:49pm |
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Management has said they are not looking at demerger as of now bcoz they have been in this business for just two years.
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"You don't need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beat the guy with a 130 IQ. Rationality is essential"- Warren Buffett
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vivekkumar_in
Senior Member
Joined: 19/Sep/2006
Location: United States
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Posts: 606
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Posted: 08/Jun/2007 at 2:46am |
Reliance Capital may sell minority stake
 Ashwin Punnen
Friday, June 8, 2007 (Mumbai):
Anil
Ambani has been on a buying spree all these months picking up stakes in
diverse companies through his financial services arm Reliance Capital.
But
now it seems he is looking for a buyer who will acquire minority stake
in his insurance ventures. And foreign players waiting for a foothold
in India are queuing up for a piece of the action.
NDTV has
learned that ADAG group company Reliance Capital is planning to rope in
a partner for the insurance business. The group is likely to sell 26
per cent each in its life and non-life insurance businesses.
ADAG
is in talks with private equity funds and foreign insurance companies
for the stake sale. Reliance Capital has however declined to comment on
the stake sale plans.
Unlike its competitors Reliance did not
take the joint venture route for its entry into the insurance business
and so far it has been quite successful in growing the business.
But
now the group wants to take its insurance venture into the next level
and that's why it feels that a right partner could bring in cash and
expertise especially for the life insurance business, which is capital
intensive.
Investment stage
Reliance's insurance
businesses are valued at around $1.2-1.75 billion and contribute about
25-30 per cent of the price of the Reliance Capital share. Reliance
ranks second in general insurance and fifth in life insurance among the
private players.
For private insurance players like Reliance it
is now the investment stage where they have to pump in money to build
their distribution network and also meet regulatory requirements.
It
will take a while for many of them to break even in the life insurance
segment though ADAG group is not short of cash it may want to realise
value when the going is good and when other players like ICICI
Prudential and SBI Life are also looking at diluting the group
holdings.
Source: http://www.ndtvprofit.com/homepage/storybusinessnew.asp?id=38774&template=&cache=6/8/2007%209:22:04%20PM
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Often we forget there's a company behind every stock,and there's only one reason why stocks go up. Companies go from doing poorly to doing well or small companies grow to large companies.
P Lynch
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