I also feel he wont acquire the bank...rather promote it..but it is definitely on his radar..
Meanwhile Reliance Capital has been voted as one of the MOST INVESTOR FRIENDLY COMPANIES by Business Today
"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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Posted: 26/Jul/2007 at 10:48am
QUestiuon is RCap needs a a bank that is spread all over the country and banks like dena, karnataka etc are localised but yes setting up branches from 0 is tougher then from 501!!!
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We are downgrading Reliance Capital to a Neutral as the stock has doubled in the past 4 months and we believe current valuations are already pricing in much of the expected growth in its businesses. We have raised our sum of parts value for R-Cap to Rs 1403 from Rs 1196
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Posted: 27/Jul/2007 at 7:25pm
Originally posted by smartcat
Little bit of fineprint on RelCap's results -
[quote] 1QFY08 earnings at Rs 3.25bn were up 187% yoy owing to capital gains of Rs 3.5 billion. Adjusting for that core operating profit was down 90% yoy.
Good catch SmartCat. We need to get more details on it.
Dont brokerage house take into account investments of Rel Cap in various companies when coming out with a price target...Consolidated Numbers should always be looked at to get a true picture...When new forays like broking, insurance are in investment stage how can they generate profit...
They are targetting to disburse Rs.5000 crs from consumer financing foray in FY08. Also the number of retail outlets of Rel Money will go up to 10,000 by the end of April next year...With institutional foray,expect it to give some fight to Kotak who is the leader in this space.
"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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Posted: 29/Jul/2007 at 12:32pm
Ramkijee,
The picture is getting clearer and the scalability is visible, I have no doubt in my mind its going to be a multibagger for long term holders not to forget it is also one of the volatile stock.
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